Full-scale operation in the second half of 2022… Annual production of 6500 units
Global annual supply of 700,000 units by 2030
Hyundai-Kia Motors headquarters in Yangjae-dong, Seocho-gu, Seoul. Photo = Shin Hyun-ah, reporter Hankyung.com
The Hyundai Motor Group is expanding its hydrogen fuel cell system business in China, following Korea, Europe, and the United States.
Hyundai Motor Company(240,000 -4.19%)The group announced on the 15th that it has signed an investment contract to establish a hydrogen fuel cell system production and sales subsidiary with the Guangzhou Development Zone government in Guangzhou City, Guangdong Province, China.
Hyundai Motor Group explained about this investment, “It is meaningful that Hyundai Motor Group will establish its first overseas production base for hydrogen fuel cell systems in China, which is promoting’hydrogen excavation’, to solidify its position as a leading company in the hydrogen field.”
Annual global supply of 700,000 hydrogen fuel cell systems by 2030
The photo shows the Nexo hydrogen fuel cell system that Hyundai Motors exported to Swiss hydrogen storage technology company GRZ Technologies and European energy solution startups. Photo = Yonhap News
The Hyundai Motor Group plans to supply about 700,000 units of hydrogen fuel cell systems to the world annually in 2030, further expanding its global business with the establishment of a production base in China.
Previously, Hyundai Motor Group signed an eco-friendly powertrain joint development agreement with Cummins in the United States in 2019, starting with a fuel cell technology partnership with Audi in 2018 in the hydrogen fuel cell system business field. Afterwards, it began exporting to European hydrogen storage technology companies and energy solution startups in 2020.
The new subsidiary will be established with a 100% stake in Hyundai Motor Group. Hyundai Motor Group signed a business agreement (MOU) with the government of Guangdong Province in China for the establishment of a corporation in December 2019. Since then, through pre-market research to advance into the Chinese hydrogen fuel cell system market and site selection work for the construction of production facilities, detailed plans have been discussed with Guangdong Province and Guangzhou City until recently.
Hyundai Motor Group’s hydrogen fuel cell system production base in China is scheduled to start at the end of next month and produce 6,500 units a year from the second half of next year. The production base mainly produces the hydrogen fuel cell system installed in the hydrogen electric vehicle’Nexo’, and plans to sequentially expand its supply capacity in accordance with the Chinese central government policy and market conditions.
Hyundai Motor Group is planning to preoccupy the Chinese hydrogen market, which is expected to accelerate growth under the strong leadership of the central government, with world-class hydrogen fuel cell system mass production technology.
China promotes supply of 1 million hydrogen electric vehicles by 2035
The photo shows Hyundai Motor’s hydrogen electric heavy truck Exient, which was first unveiled in the Chinese market in November of last year. Photo = News1
In October last year, the China Automobile Engineering Society, which is an advisory body for automobile-related policies of the Ministry of Industry and Information Technology, released the’Energy Saving and Eco-friendly Vehicle Technology Roadmap 2.0′. According to the announcement, China plans to increase sales of new energy vehicles (pure electric vehicles, hydrogen electric vehicles, etc.) and energy-saving vehicles (hybrid vehicles, fuel-efficient vehicles, etc.) in its country to 50% by 2035.
In particular, the roadmap also included a specific goal of supplying up to 1 million hydrogen electric vehicles, mainly commercial vehicles, by 2035. This is a glimpse into the atmosphere of fostering the hydrogen industry in China. In addition, by 2025, China’s ’14th Five-Year Economic Development Plan’ is in progress, and China’s expansion of eco-friendly cars is also expected to accelerate.
The Chinese government is actively attracting major foreign companies to develop hydrogen electric vehicle technology and foster the market. Accordingly, global companies are actively moving to preoccupy an early position in the newly opened China’s huge hydrogen market.
After constructing a hydrogen charging station in Jiangsu Province, China in 2017, Toyota has been continuously promoting market entry through cooperation with leading companies in China. In June of last year, it established a R&D joint venture in Beijing in partnership with China’s Ewha Tong Hydrogen Fuel Cell System Group, DI Automobile Group, Guangzhou Automobile Group, Beijing Automobile Group, and Dongfeng Automobile Group.
Global companies such as Ballard Power Systems of Canada, Bosch and SFC Energy of Germany, and Ceres Power of the UK are also rapidly entering the hydrogen fuel cell system business in China, and fierce competition for securing technological leadership is expected in the future.
Expected synergies through extensive infrastructure utilization in Guangdong, China’s economic hub
Hyundai’s hydrogen-only heavy truck concept’Neptune’ was unveiled at the China International Import Fair last November. Photo = Yonhap News
Guangdong Province, where Hyundai Motor Group’s first overseas hydrogen fuel cell system production base was built, was the first place where China’s reform and opening policy began 40 years ago, and is the economic center of China’s No. 1 GDP ranking.
Guangdong Province is continuously promoting local government policy efforts to foster the hydrogen industry. In November of last year, the company announced a plan to promote the implementation of the hydrogen fuel cell vehicle industry in Guangdong Province, and revealed a specific goal of strengthening the competitiveness of the hydrogen industry by utilizing industrial complexes, R&D facilities and related value chain industrial bases in Guangdong Province.
In addition, it has also announced a pilot operation plan for various hydrogen projects, such as ships, home hydrogen fuel cells, and emergency power systems, centering on commercial logistics vehicles, so Hyundai Motor Group has a suitable environment as a bridgehead to enter the Chinese hydrogen market.
Hyundai Motor Group succeeded in mass-producing the world’s first hydrogen electric vehicle’Tucson ix35′ in 2013. In 2018, after mass-producing the 2nd generation hydrogen electric vehicle Nexo, it achieved global cumulative sales of 10,000 units in July 2020. This is the largest sales volume among hydrogen electric vehicles of global automobile companies. The hydrogen fuel cell system technology that provided the basis is evaluated as the world’s best.
Based on such technological competitiveness, Hyundai Motor Group plans to directly participate in various hydrogen industry development pilot projects in Guangdong Province through mutual cooperation with major Chinese companies. Through this, it is expected that it will be able to secure a stable sales base from the beginning of the establishment of a local subsidiary.
An official of the Hyundai Motor Group said, “We plan to have mass production capacity in preparation for the transition from a pilot project led by the Chinese government to an autonomous competition system for the expansion of the hydrogen fuel cell system supply.” “We plan to maintain strong market dominance across China.”
Shin Hyun-ah, Hankyung.com reporter [email protected]
Article reports and press releases [email protected]