Auto supplier Hyundai Mobis is to build two new fuel cell plants in Korea with the company announcing it will invest a total of US$1.1bn into their construction. The target is for the facilities to commence mass production in the second half of 2023 and once fully operational, they are expected to produce 100,000 hydrogen fuel cells per year.
In 2018, the company became the world’s first to set up a complete production system, incorporating everything from fuel cell stack to electronic components. Located in Chungju, South Korea, the facility 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.
Most fuel cell systems produced by Hyundai Mobis are used in FCEVs but the company is expected to scale its business to other sectors such as construction machinery and logistics equipment. Last year, it developed fuel cell power packs for hydrogen forklifts, opening up the possibility for entry into the construction machinery sector. The company is also developing power packs for hydrogen-fueled excavators and plans to enlarge its fuel cell systems for small air mobility.