The era of electric vehicles Hyundai still has high hopes for hydrogen vehicles

Consumers in South Korea have not generated as much enthusiasm for hydrogen-fueled vehicles as Hyundai had hoped

South Korea has the largest number of hydrogen fuel cell passenger cars in the world

Since taking office late last year, Euisun Chung, chairman of Hyundai Motor Group, has taken a series of bold steps. He invested more in electric vehicles and brought the company deeper into robotics. But in his efforts to transform the company from a traditional automaker to a mobility giant, another important job is to embrace hydrogen-based technology. In this regard, the future remains unknown.

The experience of Song Young-jin, a 38-year-old sales manager, shows how great a difficulty Hyundai will face to succeed in a world where battery-powered motors are increasingly adopted. In March 2020, Song Yongjin, who lives in Yiwang City, bought a Hyundai Nexo car whose hydrogen fuel cell engine emits only water vapor. Infected by modern car advertising, he believes that hydrogen-fueled cars are not only suitable for long commutes, but also more environmentally friendly.

But by August, he was tired of having to drive 50 kilometers a week to the nearest hydrogen refueling station, and he wanted to sell it. The double whammy came, and he was frustrated to see on a used car website that the value of the used Nexo was down about $1,000 a month. "I love the hydrogen-powered car itself — it's quiet, it only takes 5 minutes to charge, it's faster than an electric car," Mr. Song said. "But there are very few gas stations, and the maintenance costs [of hydrogen tanks and other parts] are huge, which is probably why they are so cheap in the used car market." Next time, I will buy electric ones. ”

Hyundai, South Korea's largest automaker, is the only global automaker besides Japan's Toyota Motor to make a big bet on hydrogen: vowing that by 2028, all of its new commercial vehicles — including buses and heavy-duty trucks — will use batteries or hydrogen fuel cells. Zheng said in September that Hyundai aims to launch "a wide range of hydrogen-based mobility solutions" by 2040, covering everything from passenger cars, trains and ships to flying objects.

This makes Hyundai cars the opposite of most of the world's other big automakers. Germany's Volkswagen, which is bullish on electric vehicles, said it would become carbon neutral by 2050 in cars it produces globally. Mercedes-Benz maker Daimler has promised to sell only electric vehicles from 2030, while Honda aims to achieve 100 percent electric vehicle sales by 2040. Like Toyota, Hyundai doesn't see electric batteries as the only answer. Saehoon Kim, head of Hyundai's Fuel Cell Center, said in a YouTube video released in September that "in order to achieve net zero emissions perfectly, we need electricity and hydrogen." It's good to have two cards in hand. ”

Consumers in South Korea have not generated as much enthusiasm for hydrogen-fueled vehicles as Hyundai had hoped. These vehicles account for less than 0.1% of total sales in the country. Ryu Yeon-wha, a former analyst at Hanwha Investment & Securities, said Hyundai had "gone too far, invested too much money in hydrogen vehicles and can't stop now." Ryu, who is now a green energy mobility consultant, said the automaker seems to underestimate the likelihood of a battery-powered electric car succeeding. "Just two years ago, a senior employee at Hyundai told analysts, 'We don't make toys like Tesla,'" he said. ”

Hydrogen-powered cars do have some advantages. They charge much faster, and while they cost much more to produce than electric vehicles, they are widely considered better suited for commercial use because battery-powered trucks and buses are considered heavier and take longer to charge than hydrogen commercial vehicles.

South Korea has the world's largest number of hydrogen fuel cell passenger cars, with about 18,500 units sold since 2016. But the lack of recharge infrastructure and high maintenance costs have become a major obstacle.

Seoul-based Hana Financial Investment shows that between January and September this year, Hyundai motor sold about 6,400 Nexos in South Korea and exported another 875. By comparison, the company sold about 87,000 electric vehicles worldwide during the same period.

The company said in a statement: "Hyundai Motor Group supports the important role of hydrogen energy in building a sustainable future and reducing society's dependence on fossil fuels. After 20 years of work at the forefront of fuel cell technology development, the Group will expand the use of fuel cell technology for wider application in vehicles. ”

The government led by South Korean President Moon Jae-in has increased the number of power stations, helping Hyundai achieve mass production of the Nexo. The government subsidizes nearly 50 percent of cars for buyers, while also offering large subsidies to commercial bus operators and station owners. With such support, Hyundai now plans to produce 500,000 hydrogen-powered vehicles per year starting in 2030.

Still, according to South Korea's Ministry of Environment data obtained by ruling lawmaker Noh Woong-rae, as of Sept. 30, the number of hydrogen refuelers nationwide was only 117, or 1 for every 146 hydrogen vehicles. In contrast, every two electric vehicles correspond to one electric vehicle charging pile.

Due to public concerns about its safety and high cost, the location of the hydrogen refueling station is difficult to choose. Local authorities spent about $2.5 million on a hydrogen refueling station in Seoul, which has only one hydrogen refueler, while a gas station with four tankers costs about $84,000. Hydrogen-fueled vehicles are also less efficient than electric vehicles due to the loss of heat and friction. Kim Tae-Nyen, president of Mirae-Mobility Research and Service, said: "Hydrogen fuel vehicles are not yet economical for consumers. Even for Hyundai, this is a loss-making business. It costs about $84,000 to produce a hydrogen-powered car, while they sell for $60,000. ”

Written by Heejin Kim, Heesu Lee, Hongcheol Kim and Ali Izadi Translator/ RongShi Editor / Li Zixuan

In short, South Korea has more hydrogen-fueled cars on the road than any other country. Still, sales of such cars account for less than 0.1 percent of the country's total car sales.