Hyundai has expressed interest in a potential collaboration with Canada’s hydrogen energy sector, as revealed to CBC News on Thursday. The South Korean automaker is banking on decarbonized vehicles to shape the future of the automotive industry. This announcement follows the recent signing of a memorandum of understanding between Canada and South Korea, outlining cooperation in various industries, including auto and battery manufacturing.
While Hyundai currently has no immediate plans to establish an auto manufacturing plant in Canada, a company spokesperson stated that they are evaluating a range of collaboration opportunities, particularly in the hydrogen energy sector, to bolster Canada’s clean-energy transition. Hydrogen-fueled cars offer advantages such as longer range and quicker refueling compared to electric vehicles. However, the widespread adoption of these vehicles necessitates the development of new infrastructure, a cost that many companies are hesitant to undertake as they focus on expanding their electric vehicle programs.
Hyundai has placed a significant emphasis on hydrogen as a potential fuel source for its vehicles, contrasting with some competitors who are scaling back on the technology. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association in Toronto, noted that Hyundai is heavily invested in the hydrogen present, particularly in trucks and heavy vehicles. The company introduced the world’s first heavy-duty commercial trucks in 2020.
In contrast to Hyundai’s commitment, other automakers like Stellantis and General Motors have discontinued their hydrogen fuel cell technology programs, citing challenges in establishing a sustainable fuel cell business. Despite these shifts in the market, Hyundai, along with its subsidiary Kia, holds approximately 12% of the market share in Canada. In 2025, Canadians purchased over 146,000 Hyundai cars and more than 94,000 Kia vehicles.
Volpe highlighted the potential for a partnership between Hyundai and the Canadian energy sector, given the advancements in hydrogen technology across provinces like British Columbia and Quebec. This collaboration could lead to a comprehensive nationwide initiative. While Hyundai’s investment in hydrogen-fueled cars has its risks, such as the recall of nearly 1,600 NEXO vehicles in Canada and the US in 2024 due to fuel leak and fire hazards, the company remains committed to advancing this technology.