BE Stock Ends Higher: Bloom Energy Denies Supply Chain And Scandium Allegations Following New Crossroads Capital Attack

• Critical reports from Crossroads Capital and Hunterbrook Capital alleged that Bloom Energy severely lacks supply chain transparency.
• The short-sellers claimed that Bloom’s 5-gigawatt production goal would unsustainably exhaust nearly the entire global supply of scandium oxide 
• In an SEC 8-K filing, Bloom Energy forcefully refuted all claims as false and misleading, asserting it has sufficient inventory independent of China.

Bloom Energy Corp. (BE) share price rose 1.1% on Thursday after the clean energy provider formally pushed back against short-seller reports, filing an 8-K report with the U.S. Securities and Exchange Commission to strongly deny allegations that it hid dependencies on Chinese materials.

The denial comes as a new analysis by investment manager Crossroads Capital criticized Bloom's lack of transparent disclosures surrounding its use of scandium—a key component in its solid oxide fuel cell servers. 

Crossroads argued that Bloom is barreling toward a "supply wall" that threatens its long-term operational viability. According to Crossroads, Bloom’s required mineral volumes will likely vastly exceed available non-Chinese supplies, making its financial targets highly unsustainable. 

The allegations made by Crossroads are entirely similar to the claims made by Hunterbrook Research on Wednesday. 

Bloom Energy’s Response

“As to the claims regarding scandium oxide, we reject the conclusions,” Bloom Energy said in an 8-K filing on Thursday. 

“We have sufficient supply of scandium oxide to meet our current fuel cell demand and backlog, and our supply is not dependent on China,” Bloom added. “We are also not dependent on China to scale scandium oxide to meet future demand growth. We have clear visibility into our supply chain to support production of 25GW of fuel cells per year, and we will continue to expand this capacity.”

Hunterbrook’s Allegations

Hunterbrook stated it used global trade data, corporate filings, and satellite imagery to uncover four separate China-linked trade routes. The short-seller further noted that a representative from Hunan Oriental Scandium explicitly confirmed that the Chinese company serves as Bloom Energy's largest scandium supplier. 

Beyond the origin of the materials, Hunterbrook raised a severe supply-demand alarm regarding Bloom Energy’s long-term scaling targets. The report argues that the company's objective to expand to 5 gigawatts of annual production would require approximately 220 tons of scandium oxide. This volume constitutes nearly the entire projected global supply of roughly 240 tons, which Hunterbrook claims makes Bloom’s steep growth targets commercially unattainable. 

BE Stock: Retail View 

Retail sentiment on Stocktwits was ‘bullish’ with ‘normal’ message volumes. Retail chatter on the stock jumped 50% over the past week. 

BE stock has jumped 195% year-to-date. 

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