Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
CES 2024 Hyundai Motor pledges to build hydrogen value chain
Hyundai Motor Group Executive Chair Chung Euisun, center, speaks during the carmaker's media day event on the sidelines of this year's CES tech trade show at Mandalay Bay Convention Center in Las Vegas, Monday (local time). Courtesy of Hyundai Motor
By Lee Min-hyung
Carmaker to off-take 3 million tons of hydrogen annually by 2035
LAS VEGAS — Hyundai Motor will build a complete value chain for hydrogen energy from its production to storage and transportation, as part of its mainstream mobility strategy in an era of carbon neutrality, the company said Monday (local time) on the sidelines of the world’s largest tech fair.
The Korean carmaker exudes a dominant influence in the hydrogen-powered vehicle industry, after launching its first-ever hydrogen-fueled Tucson ix35 on the global market in 2013. It has yet to generate meaningful revenue, but the company reiterated its unwavering belief in the market due to the eco-friendliness and safety of hydrogen.
“Our key strategy for the hydrogen energy industry is to tap deeper and faster into the business than others,” Hyundai Motor President and CEO Chang Jae-hoon said during a press conference at this year’s CES tech trade show. Once others join the hydrogen market aggressively, as has been shown in the electric vehicle (EV) market, it will be too late for Hyundai Motor to gain a first-mover advantage, according to Chang.
The Hyundai Motor chief spoke highly of the proven safety of hydrogen energy and its inherent nature as a circulated resource. He also highlighted its corporate vision of off-taking 3 million tons of hydrogen annually by 2035, a drastic increase from 13,000 tons as of 2023.
Hyundai Motor President and CEO Chang Jae-hoon speaks during a press conference in Las Vegas, Monday (local time). Courtesy of Hyundai Motor
“Hydrogen features a number of upsides,” he said. “We can cut huge social and environmental costs by using hydrogen. On top of that, it is easy for us to store and transport the energy source. For countries like Korea where there are not enough natural resources, the use of hydrogen is very meaningful. But we still have a long way to go due to the relatively high prime cost of hydrogen, which is seen in weak sales of our hydrogen-powered Nexo SUV.”
But he pledged the firm will continue its journey to become the world's top hydrogen mobility solutions provider.
Hyundai Motor Group Executive Chair Chung Euisun also held a surprise standing interview with reporters at the CES venue.
“I think it is right for us to prepare for the hydrogen-powered mobility solution not for our generation, but for the next one,” Chung told reporters.
Hyundai Motor President and CEO Chang Jae-hoon, center, explains the firm's hydrogen energy vision on the sidelines of CES 2024 in Las Vegas. Courtesy of Hyundai Motor
Software vision
Hyundai Motor also displayed its medium- to long-term strategy for the so-called software-defined everything (SDx) during this year’s CES. SDx refers to hyperconnected mobility via in-vehicle software, allowing drivers to receive updates with the latest information, even when on the road.
The firm’s SDx vision starts from the software-defined vehicle (SDV), which is a notion referring to a decoupling of hardware and software, so each part can be updated independently in real time. Artificial intelligence (AI) will stand at the center for Hyundai’s SDV vision. The AI-driven SDV will help Hyundai Motor build a key future mobility ecosystem, not just for devices, but mobility, logistics and even the overall urban operating system, according to Hyundai Motor.
“As a mobility solutions provider, our vision goes beyond vehicles,” Song Chang-hyun, president of Hyundai Motor Group’s SDV division, said during a keynote speech. “It is about empowering a mobility ecosystem. We see movement as a new source of knowledge and innovation. Our solutions and devices make that knowledge universally useful.”