New facility to enhance production efficiency with ‘One-stop’ Hydrogen Fuel Cell and Car Assembly

Hyundai Motor Co. will establish its first domestic hydrogen fuel cell plant at its Ulsan factory, the company announced on March 11.

The company’s labor and management agreed to utilize the idle site of the front-wheel 6-speed automatic transmission and dual-clutch transmission (DCT) factory at the Ulsan plant for the new hydrogen fuel cell assembly plant.

The planned fuel cell plant, which is expected to commence operations in 2028, will serve as Hyundai’s second hydrogen fuel cell production base, following the successful completion of its first overseas plant in Guangzhou, China. This facility can produce fuel cells for 6,500 hydrogen cars annually, underscoring Hyundai’s growing footprint in the hydrogen sector.

The new facility will integrate both the chemical process (stack manufacturing) and assembly process (system manufacturing) necessary for hydrogen fuel cell production, allowing Hyundai to enhance production efficiency by conducting hydrogen fuel cell production and car assembly in a one-stop manner. This approach is expected to streamline operations and reduce costs, further solidifying Hyundai’s position as a leader in hydrogen technology.

Hyundai’s foray into hydrogen technology is not new. The company has been a pioneer in this field, with the Nexo being one of its notable hydrogen-powered vehicles. In February last year, Hyundai took over the hydrogen fuel cell business from Hyundai Mobis, a move that signaled its intent to internalize and expand its hydrogen capabilities. Additionally, Hyundai unveiled its hydrogen value chain business brand “HTWO” at CES 2024 in Las Vegas, USA, in January last year, highlighting its comprehensive approach to hydrogen production, storage, transportation, and utilization.

The establishment of the Ulsan fuel cell plant is part of Hyundai’s broader strategy to expand hydrogen consumption to 3 million tons annually by 2035 in line with the global shift towards sustainable and environmentally friendly transportation solutions.

As Hyundai prepares to launch the successor model to the hydrogen car Nexo, named “IniSiium,” in the first half of this year, the company’s focus on hydrogen technology is clear. It plans to add “hydrogen business and other related businesses” to its business objectives at the regular shareholders’ meeting on April 20.

Source: Businesskorea