Hyundai is actively considering a potential partnership with the Canadian hydrogen energy sector, according to a statement provided to CBC News on Thursday. This move aligns with the South Korean automaker’s strategic focus on decarbonized 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 in various key industries, including automotive and battery manufacturing. While Hyundai currently has no immediate plans to establish an auto manufacturing plant in Canada, the company is exploring various collaboration opportunities, particularly in the hydrogen energy sector, to contribute to Canada’s transition towards clean energy.
Hydrogen-powered vehicles offer advantages such as extended range and quicker refueling compared to electric cars. However, the widespread adoption of hydrogen cars would necessitate the development of new infrastructure, a cost that many companies are hesitant to undertake as they expand their electric vehicle programs.
Hyundai has placed a significant emphasis on hydrogen as a viable fuel source for its vehicles, distinguishing itself from competitors who are scaling back on hydrogen technology. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association in Toronto, noted that Hyundai’s focus on hydrogen aligns with the company’s commitment to heavy-duty vehicles and trucks, evident in the introduction of the world’s first heavy-duty commercial trucks in 2020.
In contrast to some rivals pulling back from hydrogen technology initiatives, Hyundai continues to invest in this area. Stellantis and General Motors recently discontinued their hydrogen fuel cell programs, citing challenges in establishing a sustainable business model in this sector.
Hyundai, along with its subsidiary Kia, holds approximately 12% of the Canadian market share, positioning it closely behind Toyota, Ford, and General Motors. In 2025, Canadian consumers purchased over 146,000 Hyundai vehicles and more than 94,000 Kia cars.
Given Hyundai’s substantial market presence in Canada, collaborating with the Canadian energy sector could yield mutual benefits. Volpe highlighted the synergy between advancements in hydrogen technology in British Columbia and fuel source innovations in Quebec, suggesting the potential for a comprehensive pan-Canadian strategy.
While Hyundai’s investment in hydrogen-powered vehicles has shown promise, it has not been without challenges. The company faced a recall of nearly 1,600 NEXO vehicles in Canada and the United States in 2024 due to fuel leakage concerns and fire risks.
