Hyundai is currently exploring a potential partnership with the Canadian hydrogen energy sector, as announced to CBC News on Thursday. This move aligns with the South Korean automaker’s focus on decarbonized vehicles as the future of the automotive industry. The revelation follows the recent signing of a memorandum of understanding between Canada and South Korea, outlining collaboration in various key sectors, including auto and battery manufacturing.
While Hyundai has no immediate plans to establish an auto manufacturing facility in Canada, the company is actively considering a range of collaboration opportunities, particularly within the hydrogen energy sector, to contribute to Canada’s clean-energy transition. Hydrogen-fueled vehicles offer advantages such as longer range and quicker refueling compared to electric vehicles. However, widespread adoption would necessitate the development of new infrastructure, a cost many companies are hesitant to bear as they expand their electric vehicle programs.
Hyundai has placed a significant emphasis on hydrogen as a potential fuel source for its vehicles, distinguishing itself from competitors who are scaling back on this technology. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association in Toronto, highlighted Hyundai’s strategic approach, stating that the company recognizes the importance of leveraging hydrogen for trucks and heavy vehicles. Notably, Hyundai unveiled the world’s first heavy-duty commercial trucks in 2020.
In contrast to rivals like Stellantis and General Motors, who have discontinued their hydrogen fuel cell technology programs due to uncertainties, Hyundai remains committed to advancing in this space. With a market share of approximately 12% in Canada, just behind Toyota, Ford, and General Motors, Hyundai’s partnership potential with the Canadian energy sector holds promise. Despite challenges, such as the recall of nearly 1,600 NEXO vehicles in 2024 over fuel leak concerns, Hyundai’s investment in hydrogen-fueled cars underscores its forward-looking strategy in the evolving automotive landscape.
