INCHEON, South Korea – Hyundai Mobis will build two new fuel cell plants in Korea to accelerate the hydrogen economy and to secure broader global market dominance.
On Oct 7th, 2021, Hyundai Mobis held a groundbreaking ceremony for the new plant that will produce hydrogen fuel cell stacks at the Industrial Complex in Cheongna International City, Incheon. President Moon Jae-in and Deputy Prime Minister Hong Nam-ki attended the ceremony.
Hyundai Mobis announced to invest a total of USD 1.1 billion (KRW 1.3 trillion) into the two plants. The new plants will start mass production in the second half of 2023. When fully operational, the facilities are expected to produce 100,000 hydrogen fuel cells every year.
Hyundai Mobis, with the largest fuel cell production capacity in the world, is expected to gain even greater momentum in the global race for hydrogen mobility with the addition of new production locations.
Once they are completed, Hyundai Mobis will operate a total of three fuel cells plants. In 2018, the company became the world’s first to set up a complete production system from fuel cell stack to rest of electronic components in Chungju. The Chungju plant is capable of producing approximately 23,000 hydrogen cell systems a year.
“Despite uncertainties including COVID-19, we have decided to make this large-scale investment to secure the market-leading competitiveness in the global fuel cell industry. We will continue to invest more in facilities and strengthen our R&D capability for the development of the hydrogen industry and expand the ecosystem,” said Sung Hwan Cho, President and CEO of Hyundai Mobis.
With the completion of the new plants, Hyundai Mobis plans to expand its production lineups that applies fuel cell systems and diversify hydrogen business. Most fuel cell systems produced by Hyundai Mobis are used in fuel cell EVs but the company is expected to scale its business to other sectors such as construction machinery and logistics equipment.
Last year, Hyundai Mobis developed fuel cell power packs that go into hydrogen forklifts, opening up the possibility for entry into the construction machinery sector. The hydrogen power packs used forklifts are generators that produce electricity on their own by combining a fuel cell stack, a hydrogen tank, and a cooling device.
Now the company is developing power packs for hydrogen-fueled excavator and plans to enlarge the fuel cell systems for small air mobility.