Hyundai is currently considering a potential partnership with the Canadian hydrogen energy sector, as per a statement provided to CBC News on Thursday. This move aligns with the South Korean automaker’s focus on environmentally friendly vehicles as the future of the automotive industry.
The announcement follows the recent signing of a memorandum of understanding between Canada and South Korea, outlining cooperation across various industries, including automotive and battery manufacturing. While Hyundai has no immediate plans to establish an auto manufacturing plant in Canada, the company is exploring multiple collaboration opportunities, particularly in the hydrogen energy sector, to facilitate Canada’s transition to clean energy.
Hydrogen-powered vehicles offer advantages such as extended range and quicker refueling compared to electric vehicles. However, widespread adoption would necessitate significant investment in infrastructure for hydrogen vehicles, a cost that many companies are hesitant to incur as they expand their electric vehicle programs.
Hyundai has placed a strong emphasis on hydrogen as a potential fuel source for its vehicles, distinguishing itself from competitors who are scaling back on this technology. Flavio Volpe, President of the Automotive Parts Manufacturers’ Association in Toronto, highlighted Hyundai’s strategic focus on heavy vehicles and trucks in the current hydrogen landscape. In 2020, Hyundai introduced the world’s first heavy-duty commercial trucks powered by hydrogen.
In contrast to some rivals like Stellantis and General Motors, who have discontinued their hydrogen fuel cell programs citing challenges, Hyundai remains committed to advancing hydrogen technology. With a market share of approximately 12% in Canada and strong sales figures for Hyundai and Kia vehicles in 2025, a strategic partnership between Hyundai and the Canadian energy sector appears well-founded, according to Volpe.
Despite the potential benefits, Hyundai’s foray into hydrogen-fueled cars has not been without setbacks. In 2024, the company had to recall almost 1,600 NEXO vehicles in Canada and the United States due to concerns over fuel leaks and fire risks.