The strategic convergence between hydrogen and energy transition
The World Hydrogen Expo 2025, held from December 4th to 7th at KINTEX 2 in Goyang, South Korea, established itself as the largest global event dedicated to the hydrogen economy. With the participation of over 250 companies from 25 countries and approximately 40,000 visitors, the event highlighted a turning point: hydrogen has transcended the narrative of clean mobility to position itself as a critical vector for energy storage on an industrial scale.
Hyundai Motor Group used this platform to present ten groundbreaking technological innovations, operationalizing its vision through the HWTO (Hydrogen for Humanity) platform.
More important than the technological portfolio is the strategic positioning. Jaehoon Chang, Vice-Chair of the Group, explicitly articulated the intersection between energy demand driven by artificial intelligence and the intermittency of renewables: “Hydrogen offers the most powerful solution for storing and utilizing renewable energy, complementing its intermittency and increasing overall efficiency.”
This declaration redefines hydrogen from an alternative fuel to a critical infrastructure component for energy resilience.
Structural investments across the entire value chain.
Hyundai's strategic differentiation is embodied in three dimensions of investment:
Industrial production capacity
The fuel cell plant in Ulsan represents an investment of KRW 930 billion (approximately USD 700 million), occupying 43,000 square meters on land previously dedicated to internal combustion engines. Operation will begin in 2027 with an annual capacity of 30,000 fuel cell and electrolyzer systems.
The symbolism of converting legacy infrastructure signals an irreversible commitment to technological transition.
Scalability of PEM electrolyzers
Operational plants in Buan and Boryeong (1 MW each) establish a technological baseline. Collaboration with the Jeju government aims to develop 500 MW of capacity by 2029, while the planned complex for the southwest coast targets 1 GW with an investment of USD 1.93 billion.
To provide context: global manufacturing capacity for PEM electrolyzers expanded from 12.5 GW in 2022 to 25 GW in 2023, with a projection of 165 GW annually by 2030. Hyundai is positioned to capture a significant share of this exponential expansion.
Distribution infrastructure
Four technologies presented are transforming refueling paradigms:
- Second-generation mobile station (700 bar) offers deployment flexibility for regions with intermittent demand.
- The concept of a packaged station enables multi-level and underground urban deployment.
- Automated refueling robot (ACRH) integrates artificial intelligence for autonomous refueling.
- Liquid hydrogen storage system at -253°C for large-scale industrial applications.
Business performance and competitive dynamics
The launch of the new NEXO in June 2025 validated the product-market fit hypothesis: approximately 6,767 units sold in three months, exceeding the performance of the previous generation by 4x in the same period.
Technical improvements include an increased total power output from 135 kW to 190 kW, a projected range of 720 km (versus 380 miles for the previous generation in the US), and a reduced 0-100 km/h acceleration time from 9.2 to 7.8 seconds.
However, the competitive landscape remains challenging. Global FCEV sales fell 27% in H1 2025 to 4,102 units versus 5,635 in H1 2024. Hyundai maintains a 30.5% global market share, but with a 31.9% year-on-year decrease.
The recovery in Q3 2025 with 3,723 units (a 200% YoY increase) suggests a trend reversal, catalyzed by the new NEXO.
Toyota experienced a steeper decline (-46.1%), hampered by persistent supply infrastructure challenges in California. Notably, Chinese manufacturers captured nearly 50% of the global FCEV commercial vehicle market, signaling relative strength in the B2B segment versus passenger segments.
Industrial applications beyond mobility
Three groundbreaking technologies expand the scope of applications:
The hydrogen burner, developed by Hyundai Motor, utilizes heat generated by the combustion of a hydrogen-air mixture for high-temperature processes. Initial implementation in paint ovens at the Ulsan plant will be gradually expanded to other processes and plants globally.
A 100 kW fuel cell generator will be introduced at Kia and Hyundai Glovis facilities in Pyeongtaek Port, decarbonizing critical port infrastructure for global logistics.
Portable power generator with interchangeable storage modules reduces downtime through automated replacement system.
Structural opportunities for Latin America
The Latin American hydrogen market, estimated at USD 20.5 billion in 2024, is projected to reach USD 41.41 billion in 2033.
Brazil emerges as a regional leader with unique competitive advantages: extensive hydroelectric infrastructure provides stable, low-cost electricity essential for continuous green hydrogen production. The National Hydrogen Strategy, launched in 2023, aims to transform Brazil into one of the top three global exporters by 2040.
Specific sectoral applications attract investment: the steel industry explores hydrogen-based direct reduction technologies, while Petrobras refineries represent an opportunity for stable supply with the potential to transition to green hydrogen.
Transportation infrastructure is the fastest-growing segment (CAGR 21.4%), driven by the need to connect regions rich in renewable resources to consumption centers. The Brazilian government is evaluating the development of an oil pipeline infrastructure connecting Bahia and Rio Grande do Norte with industrial hubs in São Paulo and Paraná.
Systemic challenges and scalability conditions
Despite rapid technological progress, three obstacles persist: limited refueling infrastructure outside of established hubs (California, Korea, Japan), high capital costs for green hydrogen production, and regulatory uncertainty in multiple jurisdictions.
Success will depend on resolution through coordinated public-private investment, cost reduction via continuous technological advancement, and harmonization of security standards across jurisdictions.
Heavy commercial vehicles offer greater viability in the short term due to predictable usage profiles, concentrated refueling centers, and demand for extended range.
Implications for strategic decision-makers
Hyundai's presentation at the World Hydrogen Expo 2025 demonstrates its consolidated position as an integrated leader in the value chain. Through ten innovations covering production, storage, refueling, mobility, and industrial applications, the Group articulates a holistic vision where hydrogen functions as a critical vector for energy storage and industrial decarbonization.
In the Brazilian context, Hyundai's participation offers an extensible strategic thinking model. Brazil possesses structural advantages that can attract investment from global manufacturers in production and distribution. Estimated growth to USD 41.41 billion in the Latin American market by 2033 provides a window of opportunity to build local capacity that positions Brazil as a regional leader in the hydrogen-based energy transition.
