Hyundai Motor has completed the acquisition of the domestic hydrogen fuel cell business from Hyundai Mobis.
Earlier, in February, Hyundai Motor and Hyundai Mobis signed a transfer agreement to integrate the previously separate R&D and production activities for the hydrogen fuel cell business.
With the acquisition process finally completed last month, Hyundai Motor has consolidated not only the facilities and assets related to Hyundai Mobis’ hydrogen fuel cell business but also R&D and production quality personnel, enabling it to gather technology and resources in one place to accelerate technological innovation and product development.
As part of this acquisition, Hyundai Motor established a “Hydrogen Fuel Cell Process Quality Laboratory” within its R&D Hydrogen Fuel Cell Development Center and reorganized to enhance its overall organizational structure responsible for manufacturing technology and production quality.
Hyundai aims to leverage the integrated hydrogen organization to secure the technological competitiveness of hydrogen fuel cells and improve production quality, while expanding sales of hydrogen fuel cells applicable not only to hydrogen electric vehicles but also to various external applications, ultimately accelerating the realization of a hydrogen ecosystem.
Additionally, Hyundai plans to reduce infrastructure and operating costs and enhance operational efficiency through a unified management system to supply products at competitive prices.
The hydrogen fuel cell system is a key component that significantly affects the market value, fuel efficiency, and pricing of hydrogen electric vehicles. Hyundai aims to enhance the performance, durability, and production quality of hydrogen fuel cells through value chain integration between R&D and production areas, incidentally contributing to the wider adoption of hydrogen electric vehicles.
To solidify its leadership position in the hydrogen electric vehicle market, Hyundai plans to launch the successor model to the NEXO by 2025 and continue efforts to diversify its business in non-vehicle sectors such as power generation, trams, ports, shipping, and advanced air mobility (AAM).
Hyundai intends to lead the enhancement of the hydrogen ecosystem in cooperation with various domestic and international companies, research institutions, and governments, building partnerships to connect value chains leading to a hydrogen society.
President Chang Jae-hoon stated, “We are approaching the hydrogen business with a sense of mission,” adding, “We will strengthen the collaborative framework within the group to secure leadership in the hydrogen ecosystem and continuously expand the hydrogen business through resource recycling hydrogen production, technology development, and the expansion of commercial vehicles.”
Hydrogen energy possesses the characteristics of being clean, infinite, and available anywhere in the world. Hydrogen can be produced and utilized in various ways and is advantageous for storage and transport due to its high energy density compared to other energy sources.
Hyundai Motor Group has been interested in the potential of hydrogen energy as a solution to global challenges such as environmental issues, energy supply, and resource depletion.
Since establishing a dedicated organization for hydrogen-related research and development in 1998, Hyundai showcased the Santa Fe hydrogen electric vehicle in the California Fuel Cell Demonstration Project in 2000, marking its initial prominence in the fuel cell sector.
In 2004, Hyundai successfully developed the stack, a core component of fuel cells, through consistent investment and research, steadily amassing significant achievements.
Fifteen years after starting research on fuel cells and hydrogen electric vehicles, Hyundai finally began mass production of the Tucson ix hydrogen electric vehicle in 2013, claiming the title of the world’s first mass-produced hydrogen electric vehicle.
The fuel cell system employed in the Tucson ix was recognized for its innovation, winning accolades such as the 10 Best Engines award from WardsAuto in the USA and the French Green Car of the Year award.
Five years later, in 2018, Hyundai surprised the world again by launching the second-generation hydrogen electric vehicle, the NEXO, which built on the success of the Tucson ix. The outstanding marketability of the NEXO resulted in recognitions including the 2019 10 Best Engines award in the US, 2018 CES Editor’s Choice, and the 2018 CES Asia Innovation Award.
In the public transportation sector, groundbreaking challenges are also underway. Hyundai introduced the urban hydrogen electric bus in 2017 and launched the “Universe Hydrogen Electric Bus,” equipped with a hydrogen fuel cell system, in 2023 for high-speed large buses. Hyundai is leveraging competitive hydrogen electric buses to expand distribution to government and private firms.
In 2020, Hyundai began mass production of the Xcient hydrogen electric truck, the world’s first hydrogen electric large truck, opening new possibilities for hydrogen electric vehicles. The Xcient hydrogen electric truck has been recognized for its reliability and eco-friendliness in ten countries, including South Korea, the USA, Switzerland, Germany, France, the Netherlands, New Zealand, Israel, Saudi Arabia, and the United Arab Emirates.
Hyundai and Kia’s efforts in the hydrogen business extend beyond vehicles.
In collaboration with Hyundai Mobis, Hyundai and Kia are conducting proof-of-concept projects using modified hydrogen forklifts and are developing hydrogen electric trams equipped with hydrogen fuel cell systems with Hyundai Rotem.
They have also developed mobile hydrogen fuel power generators to enable EV charging anytime and anywhere, as well as an emergency power system that can be used for buildings requiring backup power, such as data centers.
Hyundai and Kia plan to continue research on applying hydrogen fuel cells to various forms of future mobility, including ships, and will maintain comprehensive efforts to build a hydrogen society that includes system provision, software support, system installation and inspection, and various financial services.
Hyundai Motor Group is concentrating all its capabilities on building an ecosystem based on hydrogen energy, beyond just hydrogen mobility, believing that hydrogen energy will become an important resource contributing to the improvement of human value.
As such, at CES held earlier this year, Hyundai announced the expansion of its existing fuel cell brand, “HTWO,” as the brand for its hydrogen value chain business and introduced the HTWO Grid solution to expedite the transition to a hydrogen society.
The HTWO brand for Hyundai Motor Group’s hydrogen value chain business combines the capabilities of various affiliates within the group to provide optimized, customized packages by integrating unit solutions (Grid) tailored to customers’ various environmental characteristics and needs at every stage of hydrogen production, storage, transport, and use.
With the HTWO Grid solution connecting all value chains in the hydrogen industry, it is expected to drive growth in the hydrogen business from production to utilization.
Notably, Hyundai Motor Group is actively participating in hydrogen-related proof-of-concept projects while promoting a project-specific HTWO Grid solution.
They are working on a joint project to demonstrate a hydrogen production model converting organic waste into hydrogen in collaboration with the Indonesian government and recently supplied 30 units of the Xcient hydrogen electric truck as the official supply partner for the newly launched “California Port Clean Truck Initiative (NorCAL ZERO).”
Meanwhile, the government continues to support the development of the domestic hydrogen industry, providing assistance to domestic companies. The government is providing annual subsidies to promote the spread of domestic hydrogen electric vehicles and enacted the world’s first hydrogen law in 2020, which took effect the following year. Furthermore, the government is expected to continue actively supporting the development of the domestic hydrogen industry, including promoting the transition to hydrogen vehicles in public transportation.
Lee Sang-jin daedusj@autodiary.kr