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Hyundai Motor commences construction on $651M hydrogen fuel cell plant in Ulsan

Published: 30 Oct. 2025, 16:35 Updated: 30 Oct. 2025, 20:37

KIM JU-YEON
[email protected]

From right in the first row, José Muñoz, president and CEO of Hyundai Motor; Kim Doo-gyeom, mayor of Ulsan; Kim Sung-whan, minister of climate, energy and environment; and lawmakers Park Seong-min, Kim Gi-hyeon, and Yoon Jong-o attend the groundbreaking ceremony for Hyundai Motor’s new hydrogen fuel cell plant in Ulsan. [HYUNDAI MOTOR GROUP]

Hyundai Motor began construction Thursday on a 930 billion-won ($651 million) hydrogen fuel cell plant in Ulsan, marking a major step in the automaker’s long-term sustainability push.

Set for completion in 2027, the Ulsan facility will be Korea’s first to produce proton exchange membrane (PEM) electrolyzers, key components used to generate hydrogen for fuel cells, Hyundai said in a news release.

It will be Hyundai's second hydrogen fuel cell systems plant globally. The company has operated a plant in Guangzhou, China, from 2023, that manufactures fuel cell systems for hydrogen vehicles.

The three-story, 43,000-square-meter (462,848-square-foot) factory in Korea will be built on the site of a former internal combustion engine transmission plant and is expected to have an annual production capacity of 30,000 fuel cell units.

Hydrogen fuel cells — which generate electricity through electrochemical reactions between hydrogen and oxygen — and electrolyzers are used for various mobility applications including passenger vehicles, commercial trucks and buses as well as construction equipment and marine vessels.

The factory will commence operations in 2028, Hyundai Motor's labor union announced in March.

Hyundai Motor also signed a memorandum of understanding to supply fuel cells to the Korean bus manufacturer KGM Commercial at the ceremony.

The groundbreaking ceremony held Thursday was attended by key company executives, including Hyundai Motor Group Vice Chair Chang Jae-hoon and President and CEO José Muñoz as well as government officials such as Ulsan Mayor Kim Sung-hwan and Minister of Climate, Energy and Environment Kim Sung-whan, the company said.

Other officials from the hydrogen industry including Ivana Jemelkova, CEO of the Hydrogen Council, and executives from SK Innovation, Lotte Group's chemical division and Kolon Industries also attended.

In his welcome remarks, Vice President Chang said the new plant embodies Hyundai’s commitment to advancing a "hydrogen society."

“It will serve as a critical foundation for securing national economic growth momentum and establishing Korea’s leadership in the global hydrogen industry,” he said.

Climate Minister Kim Sung-hwan said the central government will "support corporate innovation efforts to achieve decarbonization in mobility and a transition to clean energy,” while Ulsan Mayor Doo-gyeom vowed to provide "administrative support."

BY KIM JU-YEON [[email protected]]