Hyundai Motor to build 2nd hydrogen facility in Ulsan
Hyundai Motor Company is poised to set up its second hydrogen fuel cell production facility at its Ulsan plant, ramping up its growth momentum in the hydrogen-powered electric vehicle market.
According to media reports on Tuesday, the automaker is in talks with the Ulsan plant labor union to build the hydrogen facility adjacent to the factory's existing auto transmission manufacturing site. This new production base will be the company's second, following the one in Guangzhou, China, and the first of its kind in South Korea.
The facility's construction is set to begin this year, with mass production expected as early as 2028. Although the annual capacity remains undisclosed, the Guangzhou site, which opened in 2023, manufactures hydrogen fuel cell systems for 6,500 vehicles annually.
The hydrogen fuel cells produced in Ulsan will power Hyundai Motor's flagship Nexo SUV, Ele City buses and trucks. Currently, the company sources its fuel cell systems from Unitus, a subsidiary of Hyundai Mobis – Hyundai Motor Group's car parts manufacturing arm. In February last year, Hyundai Motor acquired Hyundai Mobis' domestic hydrogen business, including a facility with an annual capacity of approximately 23,000 units.
While Hyundai Motor declined to comment on the matter, citing confidentiality, the Ulsan factory labor union recently stated in a newsletter, 'The Ulsan plant is set to become a major hub for the future automotive industry. …The hydrogen fuel cell facility will prioritize a people-centered work environment and uphold the right to work safely by ensuring the highest safety standards.'
At the upcoming shareholders' meeting on March 20, Hyundai Motor will add 'hydrogen and other related businesses' to its corporate objectives, marking the first time hydrogen business is explicitly stated in its articles of association.
The carmaker's decision to accelerate its domestic hydrogen business comes after last year's collective bargaining agreement with the labor union, which outlined plans to achieve the capacity to produce hydrogen fuel cells, one of the key electrification components.
This is in line with the company's initiative to integrate hydrogen systems into its vehicle lineups by 2028 and to reduce the price of hydrogen-powered cars similar to EVs by 2030. This year, it will launch the Initium hydrogen SUV, which boasts a range of 650 kilometers on a single charge.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
a day ago
- Korea Herald
Will new Nexo revive shrinking hydrogen mobility push?
Hyundai set to boost hydrogen-driven eco-friendly transition with new fuel cell SUV, but market interest in hydrogen mobility remains low Hyundai Motor is set to launch the fully revamped Nexo as early as this month in Korea, seven years after introducing its sole fuel-cell-powered sport utility vehicle currently on the market. With improved performance and fuel efficiency over its predecessor, the new Nexo is positioned to lead Hyundai's initiative to drive the global transition to hydrogen mobility — a vision first outlined in 1998 by Chung Mong-koo, honorary chair and father of current Chair Chung Euisun. 'Nexo represents the essence of sustainable mobility proposed by Hyundai Motor,' said Chung Yoo-seok, executive vice president of Hyundai Motor, during the vehicle's unveiling at the Seoul Mobility Show in April. 'We will accelerate the expansion of the global hydrogen ecosystem beyond Korea's borders and aim to achieve our annual sales target of 11,000 units.' However, recent market conditions cast uncertainty over the ambitions of the world's leading hydrogen vehicle maker. Declining demand for fuel cells In recent years, Korea's fuel-cell electric vehicle market has declined. According to SNE Research, sales dropped from 10,336 vehicles in 2022 to 3,688 in 2024, marking a 65 percent decrease. This downturn reflects deeper structural challenges for FCEVs, rather than a temporary pause, as the transition to eco-friendly mobility is increasingly driven by battery electric vehicles, experts said. 'Many consumers are still hesitant even about EVs, which are far more familiar,' said an industry source who requested anonymity. 'So it's no surprise that skepticism runs even deeper when it comes to hydrogen.' Limited charging access and high hydrogen fuel prices also remain major hurdles for fuel cell mobility. Korea has around 221 hydrogen stations — more than Japan, the US or Germany — but drivers still face inconvenience when refueling. 'Due to amplified safety concerns, strict regulations have resulted in limited station hours and the placement of stations far from residential areas, even though such risks can be mitigated through multiple layers of safety measures,' said Lee Ho-geun, professor of automotive engineering at Daeduk University. Amid these ongoing challenges, the launch of the new model is expected to have a limited impact on the market. Hyundai sold around 750 FCEVs domestically in the first quarter of 2025, and projections suggest that total annual sales may remain close to last year's levels despite the new launch. The global market also shows limited reason for optimism, with only Hyundai and Toyota currently active in the passenger hydrogen vehicle segment. Worldwide sales of FCEVs dropped from 20,704 sales in 2022 to 12,866 in 2024. The decline appears sharper in the passenger segment because China, which has grown to account for 55 percent of global FCEV sales, remains focused mainly on commercial rather than private vehicles. 'Globally, the eco-friendly vehicle market is still largely driven by government policies, such as subsidies, since automakers have yet to achieve the cost and performance competitiveness needed to rival internal combustion engine models,' said Lee. 'Because many countries want to protect their local industries and lack proprietary hydrogen vehicle technology, they are not actively pursuing policies to adopt these vehicles.' Staunch commitment, but long road ahead Despite the discouraging outlook for hydrogen, Hyundai Motor Group has strengthened its momentum in hydrogen mobility efforts since last year, aiming to retain its leading position in the hydrogen mobility era expected to follow EVs. In 2024, it integrated the fuel cell business of its parts-making unit, Hyundai Mobis, into Hyundai Motor Co. to boost synergy between hydrogen technology and vehicle manufacturing. Separately, the group established an overseeing team to complete the hydrogen business value chain, moving beyond a sole focus on fuel cell production. The group also forged partnerships with rivals Toyota and General Motors to collaborate on hydrogen strategies. 'We will work with global partners and harness our full capabilities across the hydrogen value chain to accelerate the adoption of a hydrogen-powered society,' emphasized the group's Vice Chair Chang Jae-hoon at the World Hydrogen Summit 2025 in Rotterdam, Netherlands, in May. Lee also echoed Hyundai's expansion of cooperation with other companies, saying, 'Hyundai needs to expand the overall market by licensing some basic technologies to other automakers at minimal royalty fees.' However, Kim Pil-su, a car engineering professor at Daelim University, said yearslong efforts are still needed before fuel cell vehicles can become a profitable business. 'The hydrogen mobility sector still faces numerous challenges, including high costs and issues related to hydrogen generation, delivery and storage,' he said, noting that automakers in the US and Europe have abandoned plans to launch fuel-cell passenger cars. 'For hydrogen to be truly eco-friendly (to be widely accepted by countries), it must move beyond heavy reliance on fossil fuels for production. However, mass production through water electrolysis is expected to take over a decade.'
Korea Herald
2 days ago
- Korea Herald
Hyundai pushes mobility leadership with FISITA presidency, R&D drive
Kim Chang-hwan, head of electrification energy solutions at Hyundai Motor Group, has begun a two-year term as president of the Federation Internationale des Societes d'Ingenieurs des Techniques de l'Automobile (FISITA) this month, becoming the first Korean to lead the global automotive engineering organization. According to Hyundai Motor on Wednesday, Kim will oversee FISITA, the world's largest automotive engineering society, comprising 36 countries and approximately 210,000 global auto technology researchers, through 2027. Alongside Kim, Hyundai Motor Company President and CEO Jose Munoz attended this year's World Mobility Conference hosted by FISITA, where Hyundai Motor served as the event's 'Prime Partner,' the major sponsor. 'Hyundai Motor Group is pushing the boundaries of mobility technology beyond traditional means of transportation to build a future where people can travel more safely and conveniently,' said Munoz during his keynote speech on Tuesday, the opening day of the three-day conference that runs until Thursday. Sharing the company's vision for future mobility, Munoz unveiled the latest technological advancements at Hyundai Motor Group Metaplant America, the group's third vehicle manufacturing plant in the United States. The facility, which began mass production in March, has an annual capacity of 300,000 units. Munoz highlighted the plant's automated manufacturing systems, as well as its developments in autonomous driving, battery and fuel cell systems, and HTWO hydrogen charging stations across the US. Following his keynote, Munoz strengthened networks with key executives in the global mobility industry. 'As an engineer myself, it is deeply meaningful to share Hyundai's journey in shaping future mobility with fellow engineers at the FISITA WMC,' he added. On Wednesday, Hyundai Motor and Kia researchers presented mobility technologies co-developed with European partners. These include studies on virtual performance verification using advanced software tools to simulate real-world conditions and assess vehicles and components; research on the chassis reliability of software-defined vehicles based on prognostics and health management technology; and innovations in bushing, a small rubber or polyurethane component used in a car's suspension system, aimed at optimizing electric vehicle performance. Seventeen researchers from Hyundai Motor Group also presented papers on a range of topics, including automotive batteries, advanced vehicle body technologies, thermal management, autonomous driving and electrification design. At the company's exhibition booth, Hyundai showcased the all-new Nexo, its flagship hydrogen-powered SUV, along with the vehicle's fuel cell system. 'As the mobility industry undergoes significant transformation, FISITA plays a pivotal role in shaping the future through global cooperation, innovation and inclusive leadership,' said Kim. 'As president, I will strive to ensure that technological advancements contribute to enhancing human lives.' Hyundai Motor Group has committed to investing a record 16.9 trillion won ($12.3 billion) this year, with 39 percent allocated to research and development. This marks the company's highest-ever annual investment and a 37 percent increase from the previous year.
Korea Herald
30-05-2025
- Korea Herald
Hyundai Motor denies tariff-driven US price hike rumors
Hyundai Motor Company has pushed back against speculation that it plans to raise vehicle prices in the US in response to the Trump administration's recently imposed 25 percent tariff on imported cars. The denial follows a Bloomberg report on Thursday that said Hyundai is ready to increase retail prices in the US by around 1 percent as early as next week to offset the impact of the tariff. Citing an anonymous source, the report also mentioned a potential rise in shipping costs and the prices of certain optional features. 'We have not made any decision regarding price changes after the current price guarantee period ends on June 2,' a Hyundai Motor official said on Friday, clarifying that this is the company's official stance. The official explained that June is the period when the company conducts its regular price review to adjust for market changes, but this review is not related to the recently imposed tariff. The 25 percent tariff, which took effect April 3, has raised concerns within the industry. Hyundai, however, has consistently denied any direct link between the levy and retail pricing decisions. The company has pledged to maintain its current vehicle prices, including those for its luxury brand, Genesis, through June 2 despite the tariff. Hyundai Motor's CEO Jose Munoz, also stated during his speech at the Seoul Mobility Show 2025 on April 3 -- the same day the tariffs were imposed -- that there were no plans to raise prices in the US. In a separate speech in New York, however, he was reported to have hinted at possible price adjustments depending on future market conditions after June. Hyundai has come under growing pressure to review its US pricing strategy since the tariff was introduced. The company is expanding its local production capacity with the recent opening of Hyundai Motor Group Metaplant America in Georgia, which adds up to 300,000 units in annual capacity. However, a significant portion of its US vehicle supply is still imported from Korea. Hyundai Motor Company's Korean plants exported 637,638 units to the US last year, accounting for approximately 69.9 percent of its total US sales.
