Hyundai Mobis has embarked on a hydrogen fuel cell project, costing 1.3 trillion won ($1.09 billion), to diversify production sites for the next-generation energy source for automotive transport from central Korea to the greater Seoul area and southeastern regions.
The auto parts unit of Hyundai Motor Group held a groundbreaking ceremony Thursday for a fuel-cell stack plant at the multinational corporate district of Cheongna in Incheon.
A fuel-cell stack is an essential component in producing electricity from hydrogen, used to power fuel-cell electric vehicles (FCEV) that Hyundai Motor Group is developing as it phases out combustion engine cars.
The stacks, produced in Incheon west of Seoul, will be transported for assembly at another new plant to be built in Ulsan, an industrial city about 400 kilometers southeast of the capital.
The Ulsan plant will be responsible for manufacturing a so-called fuel-cell system, the combining of the stack, an air processor, a thermal management system and other parts to be mounted in the FCEV.
The construction of the Incheon and Ulsan plants will be completed by the second half of 2022; and they will undergo test runs, before becoming fully operational from the second half of 2023.
The two factories will be capable of producing 100,000 fuel-cell systems annually, adding to the 23,000 that have been manufactured annually since 2018 at Hyundai Mobis’ Chungju plant in central Korea.
The three plants are anticipated to strengthen Hyundai’s fuel-cell system supply chain nationwide.
The chain is seen as a plus for Hyundai Mobis to consolidate its status as the world’s No. 1 fuel-cell system maker, and also for Hyundai Motor Group that is seeking to take the global initiative in the hydrogen-based automotive business.
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| President Moon Jae-in salutes to the Korean flag with major conglomerate leaders and other dignitaries during a groundbreaking ceremony of Hyundai Mobis’ hydrogen fuel-cell stack plant to be built in Incheon Free Economic Zone district of Cheongna International City, Thursday. The ceremony also marked the government’s announcement of its vision toward a hydrogen-based economy. From the left in the front row are POSCO Group CEO Choi Jeong-woo, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, SK Group Chairman Chey Tae-won, President Moon, and Hyundai Motor Group Chairman Chung Euisun. Yonhap |
“We’ve decided to make a massive investment despite business uncertainty due to the pandemic, as part of efforts to secure competitiveness in the fuel-cell system sector,” Hyundai Mobis President Cho Sung-hwan said in his congratulatory speech during the groundbreaking ceremony.
He was joined by President Moon Jae-in, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, Minister of Trade, Industry and Energy Moon Sung-Wook, Incheon Mayor Park Nam-Choon as well as heads of state-run energy companies, Cheong Wa Dae officials and lawmakers.
Also participating in the ceremony were Hyundai Motor Group Chairman Chung Eunsun and representatives from SK, POSCO, Hanwha, GS, Hyosung, Hyundai Heavy Industries and E1. They are all member companies of the 15-party “Hydrogen Alliance” launched in September to boost the hydrogen industry.
In a separate speech, President Moon underlined hydrogen as a key component of the government’s drive to foster future businesses. He lauded the corporate world for “being active in making investments and cooperating with one another.”
“The fuel-cell system plants will play a key role in consolidating Korea’s position in hydrogen-based mobility and manufacturing-related parts on a larger scale,” Moon said. “The government will not hesitate to pioneer paths for the hydrogen economy, because we believe in its potential and also that Korea can proudly serve as a main player in the industry.”
Hyundai Mobis said the project, encompassing Incheon and Ulsan, will vitalize cooperation between regional communities.
It noted Cheongna is where a hydrogen technology cluster is being fostered by the Incheon Metropolitan Government, meaning the company can work with researchers in the region.
Ulsan is home to five plants of Hyundai Motor, Hyundai Motor Group’s flagship affiliate, with an annual production capacity of 1.5 million cars.
Hyundai Mobis also plans to use the Incheon and Ulsan plants to develop a wider range of fuel-cell stacks for other vehicles, such as excavators and forklifts among others.
