Hyundai Motor Targets Global Hydrogen Market, Groundbreaking Ceremony for Chinese Hydrogen Fuel Cell Subsidiary (Comprehensive)

Hyundai Motor Holds Groundbreaking Ceremony for Chinese Hydrogen Fuel Cell Corporation "Targeting Global Hydrogen Market"
Chairman Chung Euisun "Actively Pioneering Global Hydrogen Market"

[Asia Economy Reporters Changhwan Lee and Jehun Yoo] Hyundai Motor Group has broken ground on its first overseas hydrogen fuel cell system production base. Hyundai Motor Group Chairman Chung Euisun attended the groundbreaking ceremony and later visited SK Incheon Petrochem to unveil plans for hydrogen business collaboration, embarking on a vigorous campaign to revitalize the hydrogen economy.

On the 2nd, Hyundai Motor Group held the groundbreaking ceremony for ‘HTWO Guangzhou’ by connecting Hyundai Motorstudio Goyang and Yuexiu International Conference Center in Guangzhou, Guangdong Province, China, via online video conference.

HTWO Guangzhou is Hyundai Motor Group’s first overseas hydrogen fuel cell system production plant, built to accelerate its global hydrogen business and expand the hydrogen industry ecosystem.

It is also the first large-scale dedicated hydrogen fuel cell system factory established in China. HTWO (Hydrogen+Humanity) is Hyundai’s hydrogen fuel cell system brand, symbolizing hydrogen for humanity.

HTWO Guangzhou is being constructed in the Guangzhou Development Zone, Guangdong Province, China, with a target completion in the second half of 2022. The site covers 207,000㎡ (63,000 pyeong) and will house a fuel cell system factory and an innovation center.

The annual production target is 6,500 units. Hyundai Motor Group plans to gradually increase supply volume considering the Chinese market situation and central government policies. HTWO Guangzhou will be established with 100% Hyundai Motor Group equity.

Chairman Chung, who attended the groundbreaking ceremony, emphasized, "Hyundai Motor Group will actively lead clean mobility innovation through various partnerships and proactive cooperation in China based on world-class technology and hydrogen business capabilities and know-how. Furthermore, we will strive to provide a clean environment for humanity." Attendees in China included Li Xi, Secretary of Guangdong Province, and Ma Xingrui, Governor of Guangdong Province.

Hyundai Motor Company 'HTWO Guangzhou' Bird's-eye View Rendering

In the afternoon, meeting SK Chairman Chey Tae-won to strengthen hydrogen cooperation

Chairman Chung and Hyundai Motor Group plan to lead carbon neutrality by expanding hydrogen fuel cell systems as power sources for various mobility and industrial sectors alongside the establishment of HTWO Guangzhou.

Last July, at the ‘Korean New Deal National Report Conference,’ Chairman Chung stated, "We will expand sales of hydrogen buses and hydrogen trucks in the domestic market and actively pioneer overseas markets such as the United States and China."

In the afternoon, he is scheduled to attend the 3rd Hydrogen Economy Committee meeting held at SK Incheon Petrochem under the chairmanship of Prime Minister Chung Sye-kyun, where he will discuss accelerating the hydrogen economy with SK Group Chairman Chey Tae-won and others. The Hydrogen Economy Committee is a control tower for the hydrogen economy sector composed of eight ministries, industry, academia, and civil society. Chairman Chung participates as a private-sector member representing industry.

Hyundai Motor will sign a Memorandum of Understanding (MOU) with SK and Incheon City to establish a hydrogen business foundation. In the future, hydrogen produced by SK will be utilized by Hyundai Motor, and Hyundai will provide hydrogen vehicles to SK, indicating cooperation between the two companies.

SK Group established a hydrogen business promotion team at the group level last year, preparing for full-scale entry into the hydrogen business and emerging as an important hydrogen economy partner for Hyundai Motor. Recently, as its first investment of the new year, SK invested a total of 1.85 trillion KRW in the U.S. hydrogen company Plug Power, acquiring a 9.9% stake and becoming the largest shareholder.

Additionally, on the 16th of last month, Hyundai Motor signed a hydrogen business cooperation agreement with POSCO Group, agreeing to gradually convert 1,500 vehicles such as trucks operating at POSCO’s Pohang and Gwangyang steelworks to Hyundai’s hydrogen electric vehicles. They will also jointly promote hydrogen fuel cell power generation projects. Hyundai Motor Group aims to produce 500,000 hydrogen electric vehicles and 700,000 hydrogen fuel cell systems by 2030.

Hyundai Motor strives to expand the global hydrogen ecosystem

Based on its hydrogen fuel cell system technology, Hyundai Motor Group has designated Korea, the United States, China, and Europe as four major hydrogen business hubs and is working with governments and numerous global companies in each country to expand the hydrogen ecosystem.

By next year, the construction of the second dedicated hydrogen fuel cell system factory in Chungju, Chungbuk, will be completed, increasing domestic production capacity to 40,000 units. By 2030, more than 500,000 units can be produced domestically.

In Europe, Hyundai launched ‘Hyundai Hydrogen Mobility’ with Swiss hydrogen energy company H2 Energy the year before last, and has shown tangible results such as agreeing to supply 1,600 hydrogen electric heavy trucks by 2025.

A Hyundai Motor Group official stated, "With the construction of the first overseas hydrogen fuel cell system factory, we will be able to accelerate our global market penetration. As a first mover with world-class technology, we will solidify our leadership in the global hydrogen fuel cell system market."

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