Honda Aims To Expand Hydrogen Business With External Sales Of Next-Generation Fuel Cell System

Shivani Kumaresan
·2 min read

  • Honda Motor Co Ltd (NYSE: HMC) plans to launch a fuel cell vehicle (FCEV) model equipped with the next-generation fuel cell system in 2024, jointly developed with General Motors Company (NYSE: GM).

  • The next-generation fuel cell system, which leverages the knowledge, know-how and economies of scale of both companies, will reduce the cost to one-third compared to the cost of the fuel cell system in the 2019 Honda Clarity Fuel Cell.

  • Honda has begun fundamental research on future fuel cell technologies with targets to halve the cost and double the durability compared to the fuel cell system co-developed with GM.

  • Also Read: Honda Makes Operational Changes To Push Electrification Business

  • Honda has identified four core domains for the utilization of its fuel cell system: fuel cell vehicles (FCEV), commercial vehicles, stationary power stations and construction machinery, and will actively engage in collaboration with other companies.

  • Since 2013, Honda has been working with GM on the joint development of the next-generation fuel cell system.

  • In the mid-2020s, Honda will begin external sales of its fuel cell system at the level of 2,000 units per year, with a plan to expand sales in stages.

  • Honda will increase sales to 60,000 units in 2030 and to a few hundred thousand units per year by the second half of the 2030s.

  • The move is part of the automaker’s effort to realize carbon neutrality for all products and corporate activities Honda is involved in by 2050.

  • Also Read: Honda Partners With GS Yuasa For Lithium-Ion Batteries

  • Price Action: HMC shares are trading lower by 1.22% at $25.00 in premarket on the last check Thursday.

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