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.
By Byun Hye-jin (hyejin2@heraldcorp.com)
