Hyundai is currently considering a potential partnership with the Canadian hydrogen energy sector, as indicated to CBC News on Thursday. The South Korean automaker is placing its bets on decarbonized vehicles to shape the future of the automotive industry.
This development follows the recent signing of a memorandum of understanding between Canada and South Korea, outlining collaboration in various industries including auto and battery manufacturing. While Hyundai does not have immediate plans to establish an auto manufacturing plant in Canada, the company is actively exploring a range of opportunities for collaboration, particularly in the hydrogen energy sector to support Canada’s transition to clean energy.
Hydrogen-fueled vehicles offer advantages such as longer range and quicker refueling compared to electric vehicles. However, widespread adoption would necessitate the creation of new infrastructure for hydrogen cars, a cost that many companies are hesitant to undertake as they focus on expanding their electric vehicle programs.
Amidst some competitors stepping back from hydrogen technology, Hyundai has doubled down on hydrogen as a potential fuel source for its vehicles. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association in Toronto, noted that Hyundai is heavily investing in hydrogen, especially for trucks and heavy vehicles, with the unveiling of the world’s first heavy-duty commercial trucks in 2020.
Stellantis and General Motors have discontinued their hydrogen fuel cell technology programs, citing the long and uncertain path to a sustainable fuel cell business. Despite this, Hyundai remains committed to its hydrogen-fueled car initiative as it holds about 12% of the market share in Canada, trailing behind Toyota, Ford, and General Motors. In 2025, Canadians purchased over 146,000 Hyundai cars and more than 94,000 Kia vehicles.
Volpe emphasized that with Hyundai’s significant market share in Canada, a potential collaboration with the Canadian energy sector aligns well. He highlighted the advancements in hydrogen technology across provinces like British Columbia and Quebec, suggesting the potential for a comprehensive national strategy.
Although Hyundai’s investment in hydrogen-fueled vehicles has inherent risks, such as the recall of nearly 1,600 NEXO vehicles in Canada and the United States in 2024 due to fuel leak concerns, the company remains steadfast in its pursuit of hydrogen technology.
This article was originally published on CBC News.