Hyundai Looks To Making Hydrogen Cars The Future Of Auto Business

Hyundai Motor is looking to build more hydrogen-powered cars for the future of its auto business. The South Korean automaker is reportedly investing big in a new plant designed to significantly increase its fuel cell systems output capacity.

Hyundai told Korean news outlet Yonhap that it has decided to collectively invest 7.6 trillion won or $6.7 billion in hydrogen fuel cell technologies alongside 124 partner companies.

The main goal of the big investment is to finance the construction of new hydrogen fuel cell electric car-producing facilities and fund related research and development activities.

The carmaker explained that a large part of the investment would go to the creation of a new plant that is capable of producing 700,000 fuel cell systems by 2030. As of late, Hyundai only has one fuel cell system plant that has an output capacity of 3,000.

On Tuesday, Hyundai Motor Group executive vice chairman Chung Eui-sun attended the groundbreaking ceremony for the fuel cell systems plant that the company is building in the city of Chungju, located 150 kilometers south of Seoul.

Hyundai is going to use most of its fuel cell systems from its new plant for its own hydrogen-powered vehicles. Of the 700,000 systems, 500,000 systems are bound to be used by its manufacturing facility in the city of Ulsan.

Hyundai then plans to sell the remaining 200,000 fuel cell systems to rival companies and other manufacturers who are also producing hydrogen-powered vehicles. The move is part of the company’s business diversification strategy.

The planned increase in output capacity appears to suggest that Hyundai could be expanding its line of hydrogen fuel cell vehicles, which is currently headlined by the Nexo.

Speaking of the Nexo, the hydrogen-powered crossover has been lauded for offering effortless driving with a remarkably quiet and smooth experience. The second-in-line to the Tucson Fuel Cell is said to have the makings to be big in the U.S., but its limited supply is bound to get in the way, according to Forbes.

The news about Hyundai’s big investment comes more than a week after the company unveiled its all-new flagship SUV, called the Palisade, at the Los Angeles Auto Show. The new vehicle is marketed as the ultimate family car for comfortable daily use and adventurous road trips.