Hyundai Motor Secures Order for US Excient Hydrogen Electric Trucks... Full-Scale Entry into North American Market

Selected as one of the final suppliers for the California Port Eco-Friendly Truck Introduction Project
Supplying a total of 30 Xcient hydrogen electric trucks from Q2 2023

[Asia Economy Reporter Yu Je-hoon] Hyundai Motor Company has succeeded in securing an order for hydrogen fuel cell heavy-duty trucks in California, USA, marking the official entry into the North American hydrogen market.

On the 27th, Hyundai announced that it was selected as the final supplier in the bidding for the "California Port Clean Truck Introduction Project (NorCAL ZERO)" organized by the California Air Resources Board (CARB) and the California Energy Commission (CEC).

Accordingly, Hyundai is qualified to supply a total of 30 Xcient hydrogen fuel cell trucks starting from the second quarter of 2023. Reflecting the needs of the U.S. market, Hyundai plans to increase the pressure of the hydrogen fuel tank to 700 bar to extend the driving range to approximately 800 km, and supply Xcient hydrogen fuel cell trucks equipped with tractor models designed to tow trailers.

Previously, Hyundai, together with the U.S. non-profit organization Center for Transportation and the Environment (CTE), formed a consortium with several partners aiming to build a value chain encompassing hydrogen supply, vehicle supply, leasing and financing, fleet operation, and after-sales management. Fleet operations will be handled by Hyundai Glovis, which has logistics networks and infrastructure across North America, while leasing and financing will be managed by the international financial group Macquarie Group.

Hyundai and CTE have also secured a total of $29 million (approximately 33 billion KRW) in subsidies through CARB, CEC, and various local governments, which will be used to build high-capacity hydrogen refueling stations capable of consecutively charging up to 50 hydrogen fuel cell trucks.

Before the full-scale local operation of the Xcient hydrogen fuel cell trucks, Hyundai plans to conduct a mandatory one-year demonstration project, followed by an additional five years of separate commercial operations. To this end, Hyundai will start the demonstration project next month in collaboration with global logistics companies in the U.S., conducting tests under real driving conditions and using the collected operational data to develop and secure orders for vehicles tailored to local customer needs.

In particular, Hyundai received a subsidy of $500,000 (approximately 570 million KRW) from the South Coast Air Quality Management District (SCAQMD), a California state government agency, to reduce costs related to vehicle development and local operations. The company explained that the state government's subsidy support is granted only to projects deemed to have technical and commercial competitiveness, meaning this subsidy decision recognizes the Xcient hydrogen fuel cell truck and Hyundai's overall hydrogen system capabilities.

Over the next year, Hyundai will utilize two Xcient hydrogen fuel cell trucks for long-distance freight transport in Southern California and plans to build three hydrogen refueling stations in cooperation with FEF, a local company specializing in hydrogen refueling station construction and operation.

Jang Jae-hoon, President of Hyundai Motor Company, stated, "Based on the experience of securing the Xcient hydrogen fuel cell truck order, we will accelerate the entry of eco-friendly commercial vehicles into North America," adding, "We will strive to establish a hydrogen value chain in the North American region in the long term and introduce a diverse lineup of hydrogen fuel-based commercial vehicles."