Hyundai expects China to play big role in hydrogen vision

China will help fuel Hyundai's hydrogen drive as a big market for its fuel cell vehicles and also a major supplier of their components, said the South Korean carmaker on Tuesday.

The group, which owns Hyundai and Kia brands, unveiled its campaign called Hydrogen 2040 at an online forum on Tuesday.

Among other things, it plans to introduce fuel cell systems into all its commercial vehicle models by 2028 and expects fuel cell vehicles to have price tags similar to battery electric vehicles around 2030.

"We want to offer practical solutions for the sustainable development of humanity and with these breakthroughs, we aim to help foster a worldwide hydrogen society by 2040," said Hyundai Chairman Euisun Chung.

Saehoon Kim, head of Hyundai's fuel cell development, said China will be one of its largest markets and it can help promote the sector as the country is "always fast...has the capabilities, abilities and everything, to do it".

He said China will be an important supplier of fuel cell vehicle components. Earlier this year, Hyundai announced it would build its first overseas fuel cell plant in South China's Guangdong province.

The plant, with an annual capacity of 6,500 fuel cell systems, will be wholly owned by Hyundai. Construction is scheduled to be finished in the second half of 2022, the automaker said.

"The Guangzhou plant will leverage the group's extensive expertise in fuel cell system production to secure a technological leadership position in China's rapidly developing hydrogen industry," Hyundai said in a statement earlier this year.

Representatives at Hyundai China said the company will showcase its latest hydrogen products at this year's China International Import Expo.

Hyundai said it has been preparing for the future of hydrogen since it started development of the first fuel cell vehicle in 1998.

In 2013, the Tucson FCEV was introduced, opening the door to the mass production of fuel cell vehicles. Hyundai launched the fuel cell SUV, NEXO, in 2018, and the world's first heavy-duty fuel cell truck, XCIENT Fuel Cell, in 2020.

At the Tuesday event, Hyundai also showcased two third-generation fuel cell stacks, which are crucial components of hydrogen vehicles.

The 100kW stack is 30 percent smaller than the previous generation product, while the 200 kW version, which is designed for commercial vehicles, is similar in size to the one used in the NEXO SUV but its power output has doubled.

The carmaker expects them to extend their life cycle by 50 percent to 100 percent compared with the previous generation launched in 2018, which can work for 5,000 hours and enable vehicles to run for 160,000 kilometers.

Hyundai said the stacks prices will be slashed as well, adding that they will be the key factor to achieving cost parity of fuel cell vehicles with battery electric cars by 2030.

The carmaker said it is backing hydrogen to play a significant role in building a sustainable future and reducing the world's dependence on fossil fuels.

According to the Hydrogen Council, a global CEO-led initiative of leading energy, transport, industry and investment companies, hydrogen energy will account for 18 percent of global energy demand by 2050, with a market size of $2.5 trillion.

Hyundai expects hydrogen to be used not only for transportation but will also be applied to wider areas of industries and sectors by 2040. "The group aims to make hydrogen energy available to 'everyone, everything and everywhere'," said the carmaker in a statement.