Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Hyundai Motor to build 2nd fuel cell plant
Hyundai Motor Group Executive Vice Chairman Chung Eui-sun, third from right, shovels during ㅁ groundbreaking ceremony for the company's second fuel cell plant at the Hyundai Mobis factory complex in Chungju, North Chungcheong Province, Tuesday. / Yonhap
By Park Jae-hyuk
By Park Jae-hyuk
Hyundai Motor Group will build its second fuel cell plant at the Hyundai Mobis factory complex in Chungju, North Chungcheong Province, in line with its long-term roadmap for the fuel cell electric vehicle (FCEV) business, the automotive group said Tuesday.
According to its FCEV Vision 2030, the automotive group plans to produce 500,000 FCEVs a year domestically by 2030, in a move to maintain the top spot in the global market.
Industry officials regard the Hyundai Motor Group's goal as aggressive, citing the growing number of carmakers entering the eco-friendly vehicle market, as well as the conventional car market share that Hyundai Motor and Kia Motors hold globally.
However, Hyundai Motor Group expects the size of the global FCEV market will reach 2 million vehicles in 2030 in terms of annual sales.
To prepare for the future, the automotive group and its 124 subcontractors will invest 7.6 trillion won ($6.7 billion) in R&D and the expansion of their production facilities by 2030.
The number of jobs to be created through the investment is estimated at 51,000.
In addition, Hyundai Motor Group has been pushing ahead with supplying its cutting-edge fuel cell systems to other companies, capitalizing on the growing demand for fuel cell batteries.
According to the global management consulting firm McKinsey & Company, demand for fuel cell batteries is expected to be 6.5 million in 2030.
Hyundai Motor Group expects fuel cell batteries will power ships, trains and forklifts in the future, reducing costs. The group also expects more demand for fuel cells in the power generation industry.
“FCEV have a great ripple effect on related industries as 99 percent of their auto parts are produced by Korean firms. We will build up the base for a futuristic automotive industry through joint investments with our subcontractors,” Hyundai Motor Group Executive Vice Chairman Chung Eui-sun said at a groundbreaking ceremony, held Tuesday at the Chungju plant. “As a first mover in the forthcoming hydrogen economy, we will lead a society that uses hydrogen as its main source of energy.”
The groundbreaking ceremony was also attended by Minister of Trade, Industry and Energy Sung Yun-mo, North Chungcheong Governor Lee Si-jong, Chungju Mayor Cho Gil-hyung and 120 officials from Hyundai Motor Group and its subcontractors.
The minister said the government will support private companies in the FCEV market.
According to Sung, the administration plans to buy 4,000 FCEVs next year and establish 310 hydrogen fuel stations nationwide by the end of 2022.
It will also increase support for the development of key components of FCEVs and hydrogen fuel stations.
“I think the most significant change we experienced this year is the growth of the FCEV market,” Sung said. “The government will support auto part makers, so they can sustain their growth momentum.”
He added the government will create an ecosystem for production, distribution, storage and use of hydrogen.