Questions about the growth potential of the hydrogen industry arise due to policy variables, infrastructure shortages, and lack of demand, but Hyundai Motor Group continues to drive forward with its hydrogen business under Vice Chairman Jang Jae-hoon. This contrasts with major corporations like SK, Lotte, and Doosan, who have begun to adjust their investment scale and timing, thereby slowing their pace.
At the recently opened Seoul Mobility Show, Hyundai Motor highlighted the expansion of the hydrogen ecosystem as a key issue. Hyundai Motor unveiled the 'The All-New Nexo', a new version of its hydrogen vehicle first launched in March 2018, after seven years, and plans to launch it in the domestic market as early as the first half of this year. The company also expressed its intention to target overseas markets.
Hyundai Motor has announced new hydrogen vehicle model release plans since last year. The hydrogen vehicle concept car 'Initium', unveiled for the first time in October last year, serves as the basis for the 'The All-New Nexo'. The term Initium, which means 'beginning' in Latin, carries the significance of 'the vanguard opening the hydrogen society.'
Along with the new Nexo, Hyundai Motor also showcased the hydrogen electric truck Xcient. Xcient, launched in 2020, is the world's first mass-produced large hydrogen electric truck made by Hyundai Motor and began operation in Switzerland. Currently, the accumulated distance traveled by the 48 units of Xcient operating in Switzerland exceeds 10 million kilometers.
Hyundai Motor has also highlighted the role of Xcient at the Meta Plant America (HMGMA) facility completed last month in Georgia, USA. Hyundai Motor aims to establish an eco-friendly logistics and supply chain system by transporting HMGMA parts and completed vehicles with 21 units of Xcient.
While major corporations, including Hyundai Motor, have engaged in the hydrogen business, the characteristics of the eco-friendly energy industry have caused government policy variables to loom large, and the slow pace of infrastructure development has held them back. Particularly, when the timing of regime changes both domestically and internationally coincides, the investment burdens on corporations inevitably increase.
Since the end of last year, domestic political uncertainties have continued, and with the inauguration of the Donald Trump administration, changes in energy policy have been anticipated, leading many corporations' hydrogen businesses to sink below the surface. SK Group is working on a rebalance of its hydrogen business, and Doosan's hydrogen business has also been unable to gain momentum.
LOTTE Chemical, which is set to activate the hydrogen shipping center in the Daesan plant and the Ulsan hydrogen fuel cell power plant in the second half of this year, is also taking a breather. While LOTTE Chemical announced plans to invest 6 trillion won in its hydrogen business by 2030 to achieve an annual hydrogen production volume of 1.2 million tons and an annual revenue of 5 trillion won, it has lowered its targets to 600,000 tons and 3 trillion won, respectively.
Hyundai Motor aims to establish a hydrogen ecosystem that encompasses not only automobiles but also energy production, storage, transportation, and charging through the so-called 'HTWO Grid'. Having started research and development (R&D) on hydrogen vehicles relatively early in 1998, it is believed that Hyundai Motor will lead the industry inside and out once the hydrogen society becomes fully operational in the long term.
Vice Chairman Jang Jae-hoon, who is active as the chair of the Global Hydrogen Council following Hyundai Motor Group Chairman Chung Eui-sun, is at the forefront of expanding Hyundai Motor's hydrogen business. Last month, Hyundai Motor established a hydrogen energy control tower under the planning and coordination department led by Vice Chairman Jang and passed a resolution to add the hydrogen business to the articles of incorporation at the regular shareholders' meeting.