ITM Power: State Investment and Board Shake-Up as Shares Tumble 40% in a Month

Electrolyser maker ITM Power loses nearly all 2025 gains after spring rally, as market awaits UK regulator's decision on £46.5M grant for new Sheffield plant.

The story of ITM Power’s first half is a study in extremes. After a blistering spring rally that pushed the stock 78% higher year-to-date, the electrolyser specialist has surrendered almost all of its gains in a brutal correction. The shares recently closed at €1.28, having lost roughly 50% from the late-May peak of €2.58 and fallen nearly 40% in just 30 days. Even the British government’s direct entry as a shareholder in the second quarter has done little to steady the nerves.

In April, Great British Energy, the state investment vehicle, acquired a 10.4% stake through a share placing worth £40 million. The move lifted ITM Power’s liquidity guidance for the current financial year to between £210 million and £215 million. But the stock has continued to slide, underscoring the market’s focus on a far larger pending decision.

All eyes are on the UK Department for Energy Security and Net Zero (DESNZ), which has provisionally awarded ITM Power a £46.5 million grant to build a new production facility in Sheffield. The funds, earmarked for the 2026/27 and 2027/28 fiscal years, are now being scrutinised by the Subsidy Advice Unit of the Competition and Markets Authority (CMA). The review process, which began in January, is scheduled to conclude by the end of June 2026. Until then, the company’s expansion plans—and the shares—remain in limbo.

Alongside the grant saga, ITM Power is pushing ahead with the industrialisation of its next-generation electrolyser platform, Chronos. Designed to replace the current Trident model in large-scale plants, Chronos promises 10% greater operating efficiency, 40% lower manufacturing costs, and 50% fewer components. The company aims to reach 1 GW of production capacity by 2028. Whether these metrics hold up in serial production will determine its competitive position in the global hydrogen market.

The boardroom has seen a change too. On 24 June, Oleg Williamson, an assistant treasurer at Linde since 2022, joined the board as the industrial gases group’s representative, replacing Matthias von Plotho. Chairman Jürgen Nowicki welcomed the appointment, which ensures continuity in the strategic partnership between ITM Power and its largest shareholder. Such rotations are routine, but the timing—amid the stock’s freefall—has added an extra layer of uncertainty for investors.

From a technical perspective, the shares are approaching oversold territory. The 14-day Relative Strength Index stands at 35.6, just above the conventional 30 threshold. The stock trades roughly 27% below its 50-day moving average of €1.75 but still holds a 23% premium above the 200-day average at €1.04. The 100-day line at €1.25 is now seen as the first critical support; a break below that could open the door to a test of the 200-day. The annualised 30-day volatility of over 100% leaves the shares acutely sensitive to any news from the CMA process.

With the next major milestone—the CMA’s green light for the £46.5 million grant—expected before the end of the month, the stock is caught between a state-backed balance sheet and a market demanding clarity. A favourable ruling would remove one of the biggest overhangs. A delay or rejection would almost certainly deepen the sell-off.