Hyundai Motor beefs up hydrogen business with asset acquisition

Hyundai Motor's HTWO Grid hydrogen fuel cell system [HYUNDAI MOTOR]

Hyundai Motor will acquire the hydrogen fuel cell business unit from its automotive part-making affiliate Hyundai Mobis, according to the company’s regulatory filing Friday.

With the latest asset acquisition decision, valued at 217.8 billion won ($163.1 million), Hyundai Motor aims to bolster its hydrogen-powered car business and the group’s hydrogen business portfolio, the automaker said.

The agreement was signed and approved by the companies’ boards of directors on Friday and will be completed by the end of May.

With the signing of the deal, Hyundai Motor will take over Hyundai Mobis’ domestic facilities, assets, and personnel in the fuel cell unit, which are estimated to be worth 217.8 billion won.

As Hyundai’s hydrogen business has been scattered with Hyundai Mobis handling research and development (R&D) capabilities and Hyundai Motor manufacturing, the automaker aims to establish an integrated portfolio with the latest acquisition, encompassing all levels of the hydrogen value chain from R&D to production, storage, transportation and utilization of hydrogen.

The ultimate goal is to speed up the deployment of hydrogen-powered vehicles, said Hyundai Motor in a release, by enhancing the performance and durability of fuel cells. Hyundai also aims to broaden its hydrogen business portfolio further into other sectors outside cars, such as power generation, trams and advanced air mobility vehicles.

Hyundai saw a steep plunge in the sales of its Nexo hydrogen-powered SUV in 2023. Hyundai sold 4,709 Nexo SUVs last year, compared to the previous year’s 11,179.

Hyundai initially planned to introduce an upgraded Nexo in 2023, but the launch has been postponed to 2025.

During CES 2024 in Las Vegas in early January, Hyundai Motor unveiled its HTWO grid, a dedicated hydrogen business brand that secures the whole hydrogen value chain — production, storage, transportation and utilization. Hyundai aims to offtake some 3 million tons of hydrogen annually by 2035.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]