Hyundai interested in Canadian hydrogen energy as it bets on natural gas-powered cars
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Hyundai is exploring “potential collaboration” with the Canadian hydrogen energy sector, it told CBC News on Thursday, as the South Korean automaker is betting on natural gas-powered cars to be the future of the automotive industry.
The revelation came days after Canada and South Korea signed a memorandum of understanding under which the two will cooperate on several key industries, including auto and battery manufacturing.
A Hyundai spokesperson said the company currently has no plans to open an auto manufacturing plant in Canada, but is reviewing a “range” of collaboration opportunities.That includes the hydrogen energy sector “to support Canada’s clean-energy transition.”
hydrogen-fueled vehicles It has a long range and can refuel fast How much can electric vehicles recharge? but will be widely adopted Need to build new infrastructure For hydrogen cars, that’s a cost that most companies are unwilling to bear when expanding their EV programs.
Flavio Volpe, president of the Automotive Parts Manufacturers Association in Toronto, said Hyundai has bet “heaviest” on hydrogen as a potential fuel source for its vehicles at a time when some of its competitors are retreating from the technology.
“They know that the future of hydrogen starts with the hydrogen present, which is trucks and heavy vehicles,” Volpe said. The company unveiled the world’s first heavy-duty commercial truck in 2020.
As rivals retreat, Hyundai leans towards hydrogen
Stellantis Close For example, last summer its hydrogen fuel cell technology development program and General Motors did the same in October, saying that the path to a sustainable fuel cell business was “long and uncertain”.
Volpe said, “If there are only a few players in a market that are going to take 10 percent of the automotive market, globally, that’s 10 million cars per year. And a production plant is 250,000 cars per year. So I’m not so concerned that it’s a niche market.”
“The Italians have created a car sector in niche markets making Ferraris, Lamborghinis and Maseratis. As long as there are a hundred companies making Ferrari-type vehicles, they are also safe.”
Hyundai, which owns Kia, is about to 12 percent In terms of market share in Canada, it trails Toyota, Ford and General Motors. Canadians bought more than 146,000 Hyundai cars and more than 94,000 kia vehicles In 2025.
Volpe said with that kind of market share, a potential partnership between Hyundai and the Canadian energy sector makes sense. “Given the advances in hydrogen technology from British Columbia to the advances in fuel sources in Quebec, this could be a pan-Canadian plan.”
The company’s investment in hydrogen-fueled cars is not without risk. It was forced to recall approximately 1,600 NEXO vehicles in Canada and the United States in 2024 Due to risk of fuel leakage and possible fire.
