It will see £7mln invested over 2 years, with the creation of 60 new jobs, to deliver some 2 megawatts worth of manufacturing capacity by the end of next year – although the facility will be expandable, up to 10 MW capacity.
The company said that the investment comes as it responds to meet rising near-term demand from its partners.
"I'm delighted to be investing in the UK to increase our manufacturing capability and create new jobs in what should be a key strategic sector for the UK,” said chief executive Phil Caldwell.
“The UK is establishing itself as a world leader in fuel cells with technologies such as the SteelCell growing in international reputation as evidenced by our partnerships with Bosch, Weichai Power and Nissan."
James Falla, Ceres chief operating officer, meanwhile, said: "We are proud to be leading the way in bringing fuel cell manufacturing into the mainstream, having already demonstrated the ability to scale our processes from research and development to high volume.
“This facility in Redhill achieves another commercial scale-up milestone in separating R&D product development from commercial production.
“The new manufacturing site will also show that we can scale up to significant volumes efficiently in an appropriate capital investment profile to match increasing customer demand.
Falla added: “We look forward to working alongside our partners to meet demand and refine the manufacturing processes here in the UK and scaling this capability through our licensing partners worldwide."