Toyota Faces Off Against Hydrogen... Hyundai Motor to Establish Hydrogen Fuel Cell Factory in China

Establishment of First Overseas Production Base for Hydrogen Fuel Cell Systems in Guangzhou, Guangdong Province
Securing Technical Standards to Target Local Hydrogen Market
Showdown with Rival Japan's Toyota

[Asia Economy Reporter Kim Hyewon] Hyundai Motor Group is establishing a hydrogen fuel cell system factory in China. This is the first time Hyundai Motor Group is building a hydrogen fuel cell system production base overseas rather than domestically. ▶Refer to the front page of our April 8, 2020 issue

According to the government and industry on the 5th, the Ministry of Trade, Industry and Energy recently held the Industrial Technology Protection Committee to review and approve Hyundai Motor Group's export approval for hydrogen fuel cell system technology. Hyundai Motor Group submitted an export approval application to the ministry early last year to promote the establishment of a hydrogen fuel cell system factory in Guangzhou, Guangdong Province, China.

Hydrogen fuel cell systems correspond to national core technologies developed with research and development (R&D) costs supported by the government, and thus require approval from the Minister of Trade, Industry and Energy under the "Act on the Prevention and Protection of Industrial Technology Leakage" when exporting technology. An informed source explained, "The government-level technology export approval process has been completed, and Hyundai Motor Group must now sign a memorandum of understanding (MOU) for investment with the local Chinese government and proceed with the corporation and factory establishment permits and procedures."

The hydrogen fuel cell system line that Hyundai Motor Group is building in Guangzhou, China, is considered the 'heart' of hydrogen fuel cell mobility. Having entered hydrogen fuel cell system development 20 years ago, Hyundai Motor Group has achieved milestones such as the world's first mass production of hydrogen electric vehicles, surpassing 10,000 Nexo sales domestically, and expanding hydrogen electric trucks, Xcient, into Europe and the Middle East.

Starting this year, Hyundai Motor Group will actively expand its global business through the hydrogen fuel cell system brand 'HTWO.' HTWO represents the molecular formula for hydrogen (H2) and embodies the two major pillars of the hydrogen fuel cell business: Hydrogen and Humanity. It expresses the commitment to provide meaningful value to humanity beyond simple energy dimensions. With the launch of the HTWO brand, Hyundai Motor Group has set four major hubs in Korea, Europe, the United States, and China, aiming to sell 700,000 hydrogen fuel cells to the market by 2030. The plan is to establish hydrogen fuel cell systems as a core replacement for internal combustion engines across all transportation sectors, including ships, trains, and urban air mobility (UAM), beyond merely partnering with other automakers to sell the systems.

Hyundai Motor Group's decision to select China as its first overseas production base for hydrogen fuel cell systems is aimed at targeting China's vast domestic market, which is accelerating its hydrogen economy activation later than others. Particularly, the Chinese hydrogen market is expected to be led by companies that secure early technology standards, making it a competitive arena where not only Hyundai Motor Group but also global companies are actively participating.

Among them, Hyundai Motor Group faces competition with Japan's Toyota, which is vying for the top position in the hydrogen ecosystem. Toyota began local production preparations by establishing a hydrogen refueling station in Jiangsu Province, China, in 2017, and in June last year, formed multiple R&D joint ventures with local companies such as Chinese hydrogen fuel cell company EVE Energy and automaker DiDi Auto Group.

In addition, global companies such as Canada's Ballard Power Systems, Germany's Bosch, and the United States' Nuvera are also building cooperative systems with local production plants, technology research centers, universities, and research institutions. An industry official said, "Hyundai is actively pursuing a global strategy not only in hydrogen electric vehicles but also in hydrogen fuel cells," adding, "It is understood that Hyundai plans to establish a local factory within this year to target the Chinese market first."

China has set phased hydrogen electric vehicle deployment targets of 50,000 units by 2025, 1.3 million units by 2035, and 5 million units by 2050. The country plans to build 10,000 hydrogen refueling stations by 2050 and expand the hydrogen energy ratio to 10% as part of its long-term roadmap.

This content was produced with the assistance of AI translation services.