Hyundai bets $6.7B on hydrogen as rivals focus on EVs

The Korean automaker has a bold vision for a "hydrogen society."

Hyundai is apparently doubling down on its hydrogen investment as other automakers shift their focus to pure battery-powered electric vehicles.

The company and its suppliers are preparing to spend $6.7 billion USD to accomplish the plan, known as FCEV Vision 2030, that will create an estimated 51,000 jobs and aimsto create a "hydrogen society" that embraces the technology across a wide range of industries.

The funds will be used to boost Hyundai's fuel-cell system production to 700,000 units annually by 2030, including a half million hydrogen powertrains for vehicles. The additional 200,000 systems will be used for drones, ships, locomotives, forklifts, power generation or other purposes.

"We will expand our role beyond the automotive transportation sector and play a pivotal role in global society's transition to clean energy by helping make hydrogen an economically viable energy source," says Hyundai Motor Group executive vice chairman Euisun Chung. "We are confident that hydrogen power will transcend the transportation sector and become a leading global economic success."

Hyundai recently launched the Nexo (pictured), its second-generation fuel-cell vehicle arriving five years after the Tucson FCEV. Sales of fuel-cell vehicles have failed to gain traction in recent years despite several models available to buyers.

Lack of infrastructure is viewed as one of the largest factors holding back growth in the FCEV segment. Owners still have only a few places to fill up, and only in a handful of California cities. Hydrogen stations are extremely expensive to build compared to EV charging sites and apparently prone to reliability issues. The latest EVs also narrow the gap in terms of recharge time versus hydrogen refueling time, further eroding the one clear advantage of hydrogen over battery power.

Hyundai apparently believes any challenges and competitive threats will be overcome, with FCEV sales forecast to reach two million units annually by 2030.