Hyundai Motor Begins Construction of Hydrogen Fuel Cell Plant in Ulsan

Hyundai Motor Company (KRX: 005380) has begun construction of a new hydrogen fuel cell production facility in Ulsan, South Korea, marking a key milestone in the automaker’s transition from conventional engines to next-generation clean energy systems.

The KRW 930 billion ($660 million) plant will produce 30,000 fuel cell units per year and manufacture polymer electrolyte membrane (PEM) electrolyzers when completed in 2027. Built on the site of a former internal combustion transmission factory, the new facility represents a symbolic and strategic pivot toward a hydrogen-based industrial ecosystem.

The groundbreaking ceremony brought together Hyundai Motor executives, including Vice Chair Jaehoon Chang, alongside government officials such as Minister Sungwhan Kim of the Ministry of Climate, Energy and Environment, and local leaders from Ulsan. Ivana Jemelkova, CEO of the Hydrogen Council, also attended, underscoring the international significance of Korea’s growing hydrogen ambitions.

Chang described the facility as a “critical foundation” for both Korea’s economic growth and its leadership in global hydrogen markets.

The plant will serve Hyundai’s hydrogen brand HTWO (Hydrogen for Humanity) and focus on two key product lines: advanced hydrogen fuel cells and PEM electrolyzers.

Next-generation fuel cells: Designed for improved power density, durability, and cost competitiveness across applications in passenger cars, trucks, buses, industrial equipment, and marine vessels. PEM electrolyzers: The first of their kind to be mass-produced in Korea, enabling zero-carbon hydrogen generation from water. Hyundai reports achieving roughly 90% localization of electrolyzer components — a significant step toward domestic supply chain independence.

Hyundai has already deployed a 1 MW containerized electrolyzer producing 300 kg of high-purity hydrogen daily and is developing a 5 MW-scale system in Jeju to build a full green hydrogen ecosystem.

The Ulsan facility will feature robotics and advanced monitoring systems to enhance efficiency and ensure worker safety, positioning it as a model for next-generation industrial automation.

Beyond production, Hyundai Motor is investing in hydrogen applications across mobility and industry. The Ulsan facility’s output will supply fuel cells for a wide range of sectors — from buses and trucks to ships and construction machinery — reinforcing Hyundai’s role in building an end-to-end hydrogen value chain that spans production, storage, transport, and utilization.

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At the event, Hyundai also signed an MoU with KGM Commercial, a leading Korean bus manufacturer, to supply fuel cells for commercial vehicles — a move that ties the new plant directly to domestic hydrogen mobility deployment.

The Ulsan groundbreaking underscores Hyundai’s long-term strategy to anchor Korea’s position in the global hydrogen economy. It aligns with national goals to commercialize hydrogen infrastructure and complements other global hydrogen investments by Hyundai Motor Group, including fuel cell systems in Europe and the United States.

Once operational in 2027, the plant is expected to boost the scalability of hydrogen technologies, strengthen Korea’s manufacturing competitiveness, and accelerate the transition toward carbon-neutral transportation and industry.

By Charles Kennedy for Oilprice.com

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