Hyundai Motor to Commercialize North American Hydrogen Trucks in 2022... Also Developing Hydrogen Tractors

[Asia Economy Reporter Suyeon Woo] Hyundai Motor Company announced plans to commercialize hydrogen trucks in the North American market in 2022 and to start mass production of hydrogen trucks at its local factory in Sichuan, China, in the same year. Following the export of hydrogen trucks and hydrogen fuel cell systems to Europe, the strategy is to target the promising markets of the United States and China.

According to the financial investment industry on the 16th, Hyundai held a briefing session for automobile analysts the day before and revealed these details.

The world's first mass-produced hydrogen electric heavy-duty truck, Xcient / Photo by Yonhap News

Hyundai Aims to Commercialize Hydrogen Trucks in North America in 2022

Hyundai plans to launch a hydrogen commercial vehicle pilot program in California in July next year and begin commercialization from 2022. The company is also discussing a larger-scale hydrogen vehicle business plan with potential customers in the U.S. than the European market where it exported large hydrogen electric trucks, and has revealed that it is developing hydrogen electric tractors targeted at the U.S. market.

Researcher Yongkwon Moon of Shin Young Securities said, "In July, 15 U.S. states decided to phase out diesel medium and heavy trucks by 2050," adding, "Although trucks and buses account for only 4% of new vehicle demand in the U.S., they contribute 25% of emissions, so this diesel commercial vehicle phase-out policy will be an opportunity for Hyundai's hydrogen commercial vehicle business in North America."

Researcher Jaeil Lee of Eugene Investment & Securities also noted, "Compared to Nikola, which recently suffered a hit to its reliability, Hyundai's product reliability is at a high level, and immediate supply is possible," adding, "Hyundai is gaining an advantageous position in the U.S. market bidding competition and there is a possibility of signing large-scale long-term supply contracts similar to the European case."

Hydrogen Medium-Sized Electric Truck Production at Hyundai’s Sichuan Factory in 2022

In the Chinese market, where the government is actively promoting hydrogen vehicle adoption policies, Hyundai plans to mass-produce medium-sized hydrogen trucks at its Sichuan commercial vehicle factory starting in 2022. The Chinese government is expected to expand the initial hydrogen vehicle market with a focus on commercial vehicles at 60% and passenger vehicles at 40%. The initial target markets are expected to be major cities such as Beijing, Shanghai, Chongqing, and Guangdong.

The world's first mass-produced hydrogen electric heavy-duty truck Xcient / Photo by Hyundai Motor Company

Recently, local automakers such as Shanghai Automotive, which has a hydrogen vehicle partnership with Toyota, announced plans to sell more than 10,000 hydrogen vehicles by 2025, indicating that competition in the Chinese commercial hydrogen electric vehicle market will intensify. Researcher Moon said, "Unlike Europe and the U.S., Hyundai plans to enter China through local production to contribute to building the Chinese hydrogen vehicle ecosystem," adding, "However, it remains to be seen how many domestic companies can enter the Chinese market alongside Hyundai to supply hydrogen vehicle parts."

Meanwhile, Hyundai expanded its hydrogen business into non-automotive industries by exporting hydrogen fuel cell systems to the European market for the first time on this day. The hydrogen fuel cell system exported to GRZ Technologies, a Swiss hydrogen storage technology company, and a European energy solutions startup is a 95kW fuel cell system installed in the hydrogen electric vehicle Nexo. These companies plan to use Hyundai's hydrogen fuel cell system to manufacture emergency power supply units and eco-friendly mobile generators.