Hyundai to acquire hydrogen business in new move to bolster its H2 car deployment

Hyundai to acquire hydrogen business in new move to bolster its H2 car deployment

February 19, 2024 0 By John Max

Hyundai Motor Company will acquire Hyundai Mobis’ hydrogen fuel cell business.

According to a recent Hyundai Motor Company regulatory filing, in a strategic move, the company will acquire the hydrogen business unit from its automotive part-making affiliate Hyundai Mobis for 217.8 billion won ($163 million).

Hyundai is zeroing in on a sustainable future.

Reportedly, the recent acquisition of the hydrogen business unit is part of Hyundai’s goal to focus on green hydrogen technologies. This will help to boost its hydrogen cars business as well as its hydrogen business portfolio outside of standard passenger vehicles, including ships, trams, advanced air mobility and power generation.

The move can help the company realize its decarbonization plans by reshaping the energy landscape and creating a sustainable energy ecosystem.

Integrating Hyundai Mobis’ hydrogen business into its operations.

Through the integration of the hydrogen fuel cell business unit into its operations, Hyundai Motor plans to streamline research and development, improve the quality of production and increase sales across various applications. The objective is to establish an integrated portfolio that includes all levels of the hydrogen value chain from R&D to hydrogen production, storage, transportation, and use.

Hydrogen Business - Hyundai Mobis Logo

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The acquisition agreement has been signed and approved.

With the signing of the agreement, Hyundai Mobis’ hydrogen business unit will be taken over by Hyundai Motor. This includes domestic facilities, assets and personnel in the fuel cell unit. The agreement has already been signed and approved by the companies’ board of directors, with the acquisition officially being completed in May.

Hyundai’s main hydrogen business goal – ramp up H2 vehicle deployment.

hydrogen news ebookWhile it does want to expand its hydrogen business portfolio to other types of vehicles, power generation and beyond, according to Hyundai, the ultimate goal of its hydrogen business focus is to accelerate the deployment of hydrogen vehicles by enhancing fuel cell performance and durability.

Speeding up its deployment of fuel cell vehicles is important, as Hyundai’s NEXO hydrogen SUV is quickly losing ground on the market, with sales plunging in 2023 (a mere 4,709 were sold compared to 2022’s 11,179 sold). The company has also struggled to launch its upgraded NEXO model, having had to push back the vehicle’s release to 2025 from its originally planned launch in 2023.

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