Hyundai Motor’s Xcient hydrogen-electric truck. Photo courtesy of Hyundai Motor.
[[B1]] Global competition over hydrogen-powered commercial vehicles is intensifying as Toyota moves fully into the market for hydrogen fuel cells used in trucks. South Korea has taken a technological lead, with Hyundai Motor (005380.KS) becoming the first in the world to mass-produce hydrogen-electric trucks. But industry officials warn that without adequate government support, that lead may not translate into an early grip on the market, leaving the country to fall behind.
[[B2]] Toyota signed a binding agreement in July to take a stake in Cellcentric, a hydrogen fuel-cell joint venture, alongside Daimler Truck and the Volvo Group, according to automakers on the 18th. Once the deal closes with regulatory approval, the three companies will each hold a 33.3% stake in Cellcentric.
[[B3]] Cellcentric is a hydrogen fuel-cell specialist established in 2021 as a 50-50 venture between Daimler Truck and the Volvo Group. As part of taking its stake, Toyota plans to provide Cellcentric with core fuel-cell technologies such as cells and materials.
[[B4]] Industry observers expect competition in the hydrogen commercial vehicle market to sharpen, given that Cellcentric develops and produces hydrogen fuel cells for heavy-duty trucks.
[[B5]] Major economies have already been preparing to build out hydrogen ecosystems. From 2021, China set up a pool of performance-linked funding worth about 8.5 billion yuan (roughly 1.5 trillion won) across five regions over five years. Through policies such as fuel-cost support, it deployed 40,000 hydrogen-electric vehicles and 574 hydrogen refueling stations.
[[B6]] In March this year, through a comprehensive hydrogen application pilot program, China announced a goal of deploying 100,000 hydrogen-electric vehicles by 2030. By building hydrogen highways centered on heavy-duty trucks and long-haul logistics, it plans to create hydrogen demand across various industries and lower the final hydrogen sales price to 25 yuan (about $3.62) per kilogram or less by 2030.
[[B7]] Japan is pursuing a “hydrogen artery” concept that would concentrate 1,500 hydrogen commercial vehicles on major east-west trunk routes over 10 years. The European Union, which is enforcing carbon dioxide emissions regulations, is expected to expand its hydrogen commercial mobility ecosystem going forward.
[[B8]] South Korea is seen as leading on technology, with Hyundai Motor beginning mass production of the Xcient, the world’s first heavy-duty hydrogen-electric truck, in 2020. As of last month, the Xcient had logged more than 27 million kilometers in cumulative driving distance, steadily building operating experience.
[[B9]] The industry argues that South Korea also needs government-led support policies to strengthen the global competitiveness of its hydrogen commercial vehicle sector. Future competitiveness in the hydrogen market depends not only on vehicle performance but on how quickly a hydrogen commercial vehicle ecosystem — including refueling, maintenance and operating systems — can be built.
[[B10]] Some suggest designating hydrogen logistics corridors along major logistics arteries and, on that basis, drawing up a mid- to long-term strategy for deploying hydrogen commercial vehicles and building out refueling infrastructure. Others say the government should keep expanding existing support policies, such as fuel subsidies and highway toll reductions, to improve the operating economics of hydrogen freight trucks.
[[B11]] “The cooperation between Daimler Truck, the Volvo Group and Toyota will highlight the growth potential of the hydrogen commercial vehicle market and serve as a catalyst that injects new energy into it,” an industry official said.