Hyundai announces new hydrogen fuel cell factory in South Korea
Hyundai is doubling down on hydrogen, with plans to build a new fuel cell production facility at its Ulsan manufacturing complex in South Korea.
Set to begin operations in 2028, the plant will make next-generation fuel cell systems and become the second-largest of its kind in the world, after Hyundai’s HTWO Guangzhou factory in China – a facility with an annual capacity of 6,500 fuel cell systems.
The South Korean firm has been steadily centralising its hydrogen operations. Last year, Hyundai took over Hyundai Mobis’ fuel cell division, bringing R&D and manufacturing in-house.
Now, it’s going a step further – consolidating fuel cell stack production and hydrogen vehicle assembly under one roof in Ulsan.
One-stop hydrogen production
At present, Hyundai’s fuel cell stacks – the heart of a hydrogen powertrain – are built at the former Hyundai Mobis plant in Chungju, before being shipped to Ulsan for final assembly in vehicles like the NEXO.
Once the new plant is up and running, Hyundai will streamline operations by producing fuel cells and building hydrogen-powered vehicles in the same place.
Hyundai’s labour union has backed the plan, and industry sources say construction will start this year.
This comes as part of a broader strategy to scale up fuel cell production, reduce costs, and improve efficiency.
The Ulsan facility, once completed, will further cement Hyundai’s position as one of the leading hydrogen fuel cell manufacturers globally.
A bigger hydrogen play
But Hyundai isn’t just ramping up fuel cell production – it’s expanding its entire hydrogen business.
Under its HTWO brand, launched in 2020, the company is committing to developing hydrogen energy solutions beyond just transport, covering the entire hydrogen value chain, including production, storage, and industrial applications.
At CES 2024, Hyundai outlined plans to push into wider hydrogen applications, from power generation to heavy industry.
The company has also set an ambitious goal: expanding annual hydrogen consumption to 3 million tonnes by 2035.
And it’s moving quickly. On Monday, Hyundai officials visited Japan to discuss building a hydrogen business network with local companies, part of an effort to establish partnerships and accelerate adoption.
There’s also a shareholder vote next month – reportedly to officially expand the company’s business portfolio to include hydrogen energy and related industries.
Meanwhile, Hyundai has set a target to produce 500,000 fuel cell systems annually by 2030, reinforcing its belief that hydrogen will play a central role in the clean energy transition.
What this means for Hyundai’s hydrogen cars
Hyundai’s commitment to hydrogen remains strong, despite the slow development of refuelling infrastructure.
The company has been working on hydrogen tech since 1998, and today Hyundai and Toyota are the two biggest players in the global FCEV market.
However, Hyundai’s flagship hydrogen car, the NEXO, is being retired.
But don’t worry – its replacement, called INITIUM, is due to launch later this year – a clear signal that Hyundai isn’t walking away from hydrogen passenger cars just yet.
While hydrogen infrastructure is still playing catch-up, Hyundai’s latest moves show a long-term commitment to fuel cells – not just for cars, but across the entire energy and transport landscape. The new Ulsan fuel cell plant is another step towards a hydrogen society.
