(Seoul/Korea) – Korea's Hyundai Motor Group has signed a contract with the government of Guangdong Province, China, to develop a fuel cell factory. The location is the port city of Guangzhou. Construction will begin in February and will be completed in the second half of 2022. The initial capacity is 6.500 units per year. Production will increase in line with demand, the company said. The plant is the group's first fuel cell factory outside of Korea.

Competitive advantage in China 

In the new factory, the group will produce the same fuel cell systems that it uses for its “Nexo” fuel cell electric SUV. In addition, Hyundai is working with Chinese companies and will participate in hydrogen pilot projects in Guangdong. In this way, the Koreans want to “secure a competitive advantage in China’s hydrogen industry”. Companies from Japan, Germany, Britain and other countries also worked with Chinese partners to advance the local hydrogen industry.

China's hydrogen strategy

In October 2020, the China Society of Automotive Engineers, led by the Ministry of Industry and Information Technology, released a roadmap. China wants to have around one million hydrogen-powered vehicles (FCEVs) on its roads by 2035. The focus is on commercial vehicles.

Hyundai's hydrogen strategy

In December 2018, Hyundai Motor Group announced its own long-term roadmap “Fuel Cell Vision 2030”. Accordingly, 700.000 fuel cells should be produced and marketed every year.

Back in 2013, Hyundai presented the world's first mass-produced fuel cell electric vehicle, an SUV called "ix35 FCEV" based on the "ix35" model with a gasoline engine. The “Nexo” followed in 2018, and at the end of 2020 the car manufacturer delivered the first “XCIENT Fuel Cell Trucks” in Switzerland (we reported).

In December 2020, Hyundai Motor Group introduced a new business unit called “HTWO” (derived from “H2O”). In the future, he will be responsible for the further development and marketing of the fuel cell system.

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Contract signing in Guangdong / © Hyundai Motor Group