Vehicle component manufacturer Hyundai Mobis—an affiliate of automaker Hyundai—is investing $1.1bn to build two new fuel cell plants in Incheon, South Korea.

The new plants will start mass production in the second half of 2023 and are expected to produce 100,000 hydrogen fuel cells every year.

The plants, when added to the company’s existing facility in Cungju, will give Hyundai Mobis the largest fuel cell production capacity in the world.

“Despite uncertainties including Covid-19, we have decided to make this large-scale investment to secure the market-leading competitiveness in the global fuel cell industry,” says Hyundai Mobis CEO Sung Hwan Cho.

Most fuel cell systems produced by Hyundai Mobis are used in electric vehicles, but the company hopes to expand into other sectors such as construction machinery and logistics equipment.

$1.1bn – Total investment in plants

Last year, it developed fuel cell power packs that go into hydrogen forklifts. It is now developing power packs for excavators and light aircraft.

Hyundai Mobis provides fuel cells and powertrains for Hyundai EVs and fuel cell EVs.

The firm last month announced its intention to expand into Europe. It is an established provider in Asia and North America, with sales of around $30bn.

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Author: Tom Young