Honda Scales Back Hydrogen Fuel Cell Plant in Moka Amid Global Market Shift

Honda is hitting the brakes on its original plan to roll out a massive hydrogen fuel cell manufacturing plant in Moka City, Japan. The facility, which was supposed to pump out 30,000 units a year—thanks in part to backing from Japan’s METI—has now been downsized. Instead, we’re looking at 20,000 units annually, and production won’t even kick off until sometime in fiscal year 2028.

This shift comes in the wake of a global dip in hydrogen fuel cell vehicle (FCEV) sales, which slid more than 20% in 2024. It’s part of a bigger trend across the auto industry, as companies pull back from pushing hydrogen for passenger cars. On top of that, Honda decided to pass on some of the government subsidies it had initially planned to accept.

Still Committed – But in a Different Direction

Even with the slowdown, Honda isn’t walking away from hydrogen entirely. They’re just shifting gears. Instead of focusing heavily on passenger vehicles, they’re pouring more energy into commercial vehicles, backup energy systems for buildings, and even space tech. Yep, space. Through partnerships with companies like Sierra Space and Tec-Masters, Honda plans to explore how hydrogen fuel cells can power everything from trucks to off-planet missions.

Moka City Feels the Pinch

The delay and downsize hit close to home for Moka City, which had been counting on the project to bring jobs and give the local economy a boost. Still, it’s not all doom and gloom. Honda is sticking with its hydrogen R&D, and their latest third-generation fuel cell modules are still in active development. So while production may be taking a bit of a back seat for now, the drive toward cleaner, zero-emission technology—and a more sustainable energy future—hasn’t lost steam.