Hyundai to invest $1.1 billion to build two hydrogen fuel cell plants in South Korea

Hyundai has announced plans to open two new fuel cell plants in South Korea to accelerate the growth of its hydrogen fuel cell vehicle business, according to foreign media reports.

Hyundai said at a groundbreaking ceremony in the city of (Incheon) in Incheon, where the new facility is located, that it would invest 1.3 trillion won ($1.1 billion) in the new plant, which will start producing fuel cells in the second half of 2023. Hyundai estimates that when the two plants are fully operational, they will produce 100000 hydrogen fuel cells a year. At present, Hyundai already has a hydrogen fuel cell factory in Zhongzhou (Chungju), but it has an annual production capacity of only 23000 cells.

Sung Hwan Cho, President and CEO of Hyundai Mobis, said: "although there are still uncertainties, including COVID-19, we have decided to make this large-scale investment to maintain our leading position in the global fuel cell market. We will continue to increase investment in facilities, strengthen research and development capabilities, promote the development of the hydrogen industry, and expand the ecosystem. "

Through these new plants, Hyundai hopes to expand its production lineup and diversify its hydrogen power business. The company currently makes power systems for hydrogen fuel cell electric vehicles, but they plan to enter new markets, such as construction machinery and logistics equipment. Hyundai has already produced a hydrogen fuel battery pack for forklift trucks, and the company is currently developing a power battery pack for hydrogen fuel excavators. In the future, Hyundai also plans to produce larger fuel cell systems for small flying cars.