Hyundai Motor Company today held a groundbreaking ceremony for its new hydrogen fuel cell production plant in Ulsan, South Korea, marking a major step in its efforts to position the country as a global leader in the energy transition.
The new facility will occupy 43,000 square meters on the site of a former internal combustion engine transmission plant — a symbolic shift that underscores Hyundai Motor’s pivot toward future mobility.
Scheduled for completion in 2027, the plant will integrate chemical processing and assembly operations with annual production capacity of 30,000 fuel cell units. The facility will operate under Hyundai Motor Group’s hydrogen brand and business platform HTWO brand, which symbolizes ‘Hydrogen for Humanity.’
The plant represents an investment of KRW 930 billion (about $350 million) and will produce next-generation hydrogen fuel cells and electrolyzers for various mobility applications including passenger vehicles, commercial trucks and buses, construction equipment and marine vessels.
The facility aims to position Hyundai Motor at the forefront of global hydrogen technology through two key products:
– Next-generation hydrogen fuel cell: Hyundai Motor targets enhancing both power output and durability compared to current models while achieving price competitiveness to lead the global market. Fuel cells generate electricity through electrochemical reactions between hydrogen and oxygen, functioning as onboard power generators.
– PEM electrolyzers: The plant will produce high-efficiency polymer electrolyte membrane (PEM) electrolyzers as first production in Korea. These electrolyzers generate high-purity hydrogen from water without carbon emissions — a critical technology for achieving global net-zero targets. Drawing on nearly three decades of fuel cell development expertise, the company has achieved approximately 90 percent localization of electrolyzer components.
The company has already developed an electrolyzer stack and in February completed a 1 MW containerized electrolyzer system that is currently in demonstration operation, producing more than 300 kg of high-purity hydrogen daily. A 5 MW-class large-scale project is currently under development in Jeju, Korea, with the goal of establishing a complete green hydrogen ecosystem.
Hyundai Motor plans to operate the new Ulsan hydrogen fuel cell production facility as an advanced manufacturing platform incorporating core technologies from its accumulated human-centered manufacturing expertise.
The plant will extensively deploy robotics technologies to reduce worker strain while enhancing operational efficiency. Advanced monitoring systems will detect even minute safety hazards to protect workers.
The fuel cells produced will be optimized for different applications, from passenger vehicles to commercial trucks, buses, construction equipment and marine vessels.
Beyond fuel cells, Hyundai Motor Group is developing comprehensive solutions across the hydrogen value chain — from resource-circular production to storage, transport and utilization — while building partnerships with governments, global companies and research institutions.
The groundbreaking ceremony is expected to serve as a platform for collaboration among government, local authorities and industry stakeholders, reinforcing a unified approach toward accelerating the hydrogen economy. Hyundai Motor aims to strengthen its global leadership in hydrogen and expand strategic partnerships to support carbon neutrality and ecosystem development.
Attendees at the ceremony viewed multiple generations of fuel cells and electrolyzers, along with hydrogen-powered vehicles including the all-new NEXO SUV, trucks, excavators, vessels, tractors and forklifts — showcasing the extensive applications of hydrogen mobility.
The facility is expected to scale production in line with market growth, contributing to the expansion of the global hydrogen ecosystem and supporting infrastructure development.
At the ceremony, Hyundai Motor and Korean bus manufacturer KGM Commercial signed a Memorandum of Understanding (MoU) for fuel cell supply, highlighting the plant’s pivotal role in advancing Korea’s hydrogen ecosystem.
