Hyundai Motor Company (005380) has finalized its acquisition of the domestic hydrogen fuel cell sector from Hyundai Mobis (012330), a move initiated with a transfer agreement in February. This strategic acquisition merges research and development (R&D) with production under one roof, facilitating significant operational efficiencies and reduced costs.
The acquisition, completed last May, positions Hyundai Motor to spearhead advancements in hydrogen fuel cell technology by consolidating all related facilities, assets, and expert personnel from Hyundai Mobis. This integration fosters enhanced technological innovation and product development within the company.
Hyundai has also established a new ‘Hydrogen Fuel Cell Process Quality Office’ within its Hydrogen Fuel Cell Development Center at the R&D headquarters. This office will focus on manufacturing technology and ensuring the quality of mass production, further strengthening Hyundai’s organizational structure for hydrogen fuel cell development.
The company aims to leverage its integrated hydrogen operations to improve the technological competitiveness of its hydrogen fuel cells and the quality of production. The expanded application of these cells, beyond hydrogen electric vehicles to include other sectors such as power generation and transportation, is expected to accelerate the creation of a sustainable hydrogen ecosystem.
Hyundai Motor Company is also committed to reducing infrastructure and operating costs, aiming to provide competitively priced products through a unified management system. These efforts are anticipated to directly and indirectly contribute to expanding the hydrogen electric vehicle market by enhancing the marketability of such vehicles, impacting factors like cost and fuel efficiency.
Looking forward, Hyundai plans to release a successor to the NEXO by 2025 and to diversify its hydrogen initiatives into non-vehicular sectors, including power generation and various forms of transport. This broad approach underscores Hyundai’s ambition to solidify its leadership in the hydrogen market and expand its hydrogen business foundation.
President Jang Jae-hoon emphasized the company’s mission-driven approach to the hydrogen sector, stating, “We are working on the hydrogen business with a sense of mission. We will strengthen the collaboration system of the group companies to secure leadership in the hydrogen ecosystem and expand the base of the hydrogen business by continuing to promote resource-cycling hydrogen production, technology development, and expansion of commercial vehicles.”
Hyundai Motor and Kia are not limiting their hydrogen efforts to traditional vehicles. They are exploring the application of hydrogen fuel cells across a range of future mobility solutions and are engaged in projects such as hydrogen-powered forklifts and electric trams, alongside developments in portable hydrogen fuel generators and emergency power systems.
At the forefront of these initiatives is the HTWO brand, which Hyundai plans to expand into a comprehensive hydrogen value chain business brand. Announced at CES 2024, the HTWO Grid solution is set to enhance the hydrogen industry by optimizing hydrogen production, storage, transportation, and utilization tailored to the specific needs of different customer environments.
The integration of Hyundai Mobis’ hydrogen fuel cell business is a pivotal step for Hyundai Motor Group in cultivating a robust ecosystem centered on hydrogen energy, further driving the group’s commitment to leveraging hydrogen as a critical resource in advancing human values.
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