Hyundai to Invest $6.7 Billion on Fuel Cell Vehicles

Hyundai Motor Co. and its suppliers plan to invest a combined 7.6 trillion won ($6.7 billion) by 2030 to develop next-generation fuel cell vehicles and related technologies.

Hyundai and its Kia unit aim to produce 700,000 fuel cell systems per year by the end of next decade. Some 500,000 systems are expected to be used for passenger cars and commercial trucks, while the other 200,000 is earmarked for forklifts, drones and industrial equipment.

To support the plan, the carmaker’s Hyundai Mobis affiliate is expanding capacity at its new factory in Chungju, South Korea. By 2022, the facility will have the capability to produce 40,000 fuel cell modules—comprised of fuel stacks, drive motors, power electronics and hydrogen fuel systems—per year, compared with about 3,000 units per year today.  

In June, Hyundai inked an agreement with Volkswagen AG to cooperate on fuel cell vehicle components and technologies.

Hyundai expects global demand for fuel cell powertrains to grow to surpass 2 million units per year by 2030. Honda, Hyundai and Toyota are the only companies currently offering fuel cell cars.

The Korean carmaker, which had been selling the fuel cell-powered Tucson/ix35 for about five years, launched the all-new Nexo crossover vehicle this summer. Kia is due to launch its own fuel cell vehicle in 2021.