Hyundai will set up a fuel cell system production facility in China. The construction of the facility to be built in Guangzhou, China, will start in March.
Investment agreement signed to establish a production facility
The South Korean firm made a statement on the issue on Friday. Hyundai stated that Hyundai Motor Group signed an investment agreement with the government of Guangdong province in southern China to establish the first overseas fuel cell system production facility in the country.
The automaker group reported that the construction of the Guangzhou city facility with an annual capacity of 6,500 fuel cell systems will begin in March. The construction, which will start in March, is aimed to be completed in the second half of 2022.
“The Guangzhou plant will leverage the group’s extensive expertise in fuel cell system manufacturing to secure a technological leadership position in China’s rapidly developing hydrogen industry,” the statement said.
Hyundai Motor Group, which includes Hyundai Motor Co and Kia, did not state the investment amount. However, he added that Guangdong will work with Chinese companies to participate in hydrogen-related projects.
In December, Hyundai also stated that HTWO, a brand dedicated to hydrogen fuel cell systems, started to increase business after delivering its first seven hydrogen trucks to customers in Switzerland in October.
Additionally, as hydrogen can be made from a variety of sources such as methane, coal, water, and even garbage, what it needs is water and heat.