Hyundai has expressed interest in potentially collaborating with the hydrogen energy sector in Canada, signaling its commitment to decarbonized vehicles as the future of the automotive industry. This development follows the recent signing of a memorandum of understanding between Canada and South Korea, outlining cooperation in key industries such as auto and battery manufacturing.
While Hyundai currently has no immediate plans to establish an auto manufacturing plant in Canada, the company is actively exploring various collaboration opportunities, particularly in the hydrogen energy sector, to contribute to Canada’s clean-energy transition. Hydrogen-fueled vehicles offer advantages such as longer range and faster refueling compared to electric vehicles, but their widespread adoption necessitates the development of new infrastructure, a cost that many companies are hesitant to undertake as they focus on expanding 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 have scaled back their investments in the technology. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association in Toronto, noted that Hyundai’s strategic focus on hydrogen aligns with the current market demand for trucks and heavy vehicles powered by this technology, exemplified by the company’s introduction of the world’s first heavy-duty commercial trucks in 2020.
As some automotive players like Stellantis and General Motors have discontinued their hydrogen fuel cell technology programs due to perceived challenges in establishing a sustainable business model, Hyundai’s continued commitment to hydrogen presents a unique positioning in the market. With approximately 12% market share in Canada through its Kia subsidiary, Hyundai’s potential collaboration with the Canadian energy sector holds promise, leveraging advancements in hydrogen technology across the country for a comprehensive, pan-Canadian approach.
Despite the potential benefits, Hyundai’s investment in hydrogen-fueled cars has not been without setbacks, as evidenced by a recall of nearly 1,600 NEXO vehicles in Canada and the United States in 2024 due to fuel leak and fire hazards. This underscores the importance of rigorous safety standards and ongoing development efforts in the pursuit of sustainable and efficient hydrogen-powered transportation solutions.