Hyundai has expressed interest in a potential partnership with the Canadian hydrogen energy sector, as revealed to CBC News on Thursday. The South Korean automaker is banking on decarbonized cars to shape the future of the automotive industry.
This announcement follows the recent signing of a memorandum of understanding between Canada and South Korea to collaborate in various key industries, including auto and battery manufacturing. While Hyundai currently has no immediate plans to establish an auto manufacturing plant in Canada, a company spokesperson mentioned that they are exploring multiple opportunities for collaboration, particularly in the hydrogen energy sector, to facilitate Canada’s transition towards clean energy.
Hydrogen-fueled vehicles offer advantages such as longer range and quicker refueling compared to electric vehicles. However, widespread adoption would necessitate the development of new infrastructure for hydrogen cars, a cost that many companies are hesitant to undertake as they focus on expanding their electric vehicle programs.
Hyundai has placed significant emphasis on hydrogen as a potential fuel source for its vehicles, contrasting with some competitors who are scaling back on this technology. According to Flavio Volpe, president of the Automotive Parts Manufacturers’ Association in Toronto, Hyundai is heavily investing in hydrogen with a focus on trucks and heavy vehicles. The company introduced the world’s first heavy-duty commercial trucks in 2020.
In contrast to competitors like Stellantis and General Motors, who have discontinued their hydrogen fuel cell technology development programs citing uncertainties, Hyundai remains committed to advancing in this area. With around 12% market share in Canada, just behind Toyota, Ford, and General Motors, Hyundai’s collaboration with the Canadian energy sector aligns well, considering the market potential and technological advancements across provinces like British Columbia and Quebec.
Despite the risks associated with investing in hydrogen-fueled cars, exemplified by a recall of nearly 1,600 NEXO vehicles in Canada and the United States in 2024 due to fuel leak concerns, Hyundai continues to forge ahead in this innovative sector.