By Kim Yoo-chul
Hyundai Motor is moving to spend more for the development of cars powered by hydrogen fuel cells, in a challenge to LG Chem, a major supplier of batteries for such vehicles.
Analysts say it’s too premature to talk about the marketability and feasibility of vehicles with no gas emissions citing the lack of infrastructure and huge technological challenges.
While electric cars are steadily becoming mainstream, Hyundai officials say the firm is preparing to surprise the world by realizing “economies of scale” in the marketing of hydrogen-powered vehicles.
Major automakers are launching a slew of more affordable electric vehicles bolstered by increased subsidies from government.
“The reason is simple. We want to lead the market. Any companies that have money and the technology can run an electric vehicle business after the market goes mainstream and that means conventional automakers such as Hyundai can suddenly lose their leverage,” said a technician at Hyundai Motors by telephone, last week.
He continued; “The paradigm shift toward electric cars also means carmakers start their businesses from a zero-base. That’s why top management is pushing research personnel to fine-tune technology that will be used in hydrogen-powered vehicles.”
Hyundai Chairman Chung Mong-koo is leading the way, said another official at Hyundai.
“A rechargeable battery is a core part of an electric vehicle. The battery market is already crowded led by LG Chem. We can’t run a battery business as that is cyclical and volatile like chips and flat-screens. We need something new and a hydrogen vehicle is one visible option.”
LG Chem supplies rechargeable batteries to 10 global automakers including Hyundai.
LG Chem is moving to sell more batteries to Hyundai for its electric vehicle projects, although Hyundai is apparently looking reluctant to expand the mutual partnership, sources said.
Hyundai recently delivered its first ix35 Fuel Cell Vehicles (FCV) to the City of Copenhagen in Denmark.
The 15 ix35 FCVs are claimed to be the first hydrogen-powered vehicles manufactured on a production line to be introduced in Europe.
Hyundai and Japan’s Toyota plan to bring hydrogen cars to consumers by 2015 and the companies aren’t the only ones that have shown keen interest.
Mercedes-Benz, Honda and Audi have had experimental programs leasing hydrogen-powered cars in Europe and the United States aimed at securing their own business territory and securing their place in the competition for dominance in the industry for next-generation vehicles.
“The market for hydrogen vehicles is the one that we should challenge. That doesn’t mean Hyundai will walk away from electric vehicles. But projects that are related to hydrogen cars will receive more attention from management,” said an executive at a Hyundai local parts supplier.