Sejong Industrial Benefits from Major Clients' Expansion of Hydrogen Vehicle Lineup

[Asia Economy Reporter Hyungsoo Park] SK Securities forecasted that Sejong Industrial would benefit when Hyundai Motor expands its hydrogen fuel cell vehicle lineup.

Chungwoo Seo, a researcher at SK Securities, explained on the 24th, "Recently, Hyundai Motor is considering expanding its hydrogen fuel cell vehicle product lineup."

He added, "Like the dedicated electric vehicle platform (E-GMP), hydrogen vehicles are also researching parts modularization to reduce component costs and simplify assembly processes." Furthermore, he emphasized, "Not only Hyundai Motor and Toyota, which produce hydrogen vehicles, but also automakers such as Daimler and Renault have established joint ventures with their partners to conduct research and development for hydrogen vehicle production."

Researcher Seo analyzed, "The attempt by leading companies to expand their lineup to capture the rapidly growing hydrogen vehicle market is a natural development," and "Sejong EV, a 100% subsidiary of Sejong Industrial, is preparing to supply metal bipolar plates, a core component of fuel cell stacks for hydrogen vehicles."

He explained, "It is possible to officially supply to Hyundai Mobis within the first quarter of this year," and "Previously, Hyundai Steel supplied metal bipolar plates to Hyundai Mobis, but to prepare for increased hydrogen vehicle production, the supply sources will be diversified."

Researcher Seo also predicted, "The cost of metal bipolar plates required per hydrogen vehicle amounts to several million won," and "This item is likely to contribute significantly to Sejong Industrial's performance gradually."

Additionally, he expressed expectations, "If Hyundai Motor expands hydrogen vehicle production volume and lineup, a substantial portion of the volume, not only some of the existing Nexo allocations, is likely to be assigned to Sejong EV." He added, "This could lead to rapid performance improvement and serve as a strong growth driver in the mid to long term."