Hyundai has expressed interest in a potential partnership with the Canadian hydrogen energy sector, as the South Korean automaker places its bets on decarbonized vehicles shaping the future of the automotive industry. This development follows the recent signing of a memorandum of understanding between Canada and South Korea to collaborate across various sectors, including auto and battery manufacturing.
While Hyundai currently has no immediate plans to establish an auto manufacturing plant in Canada, the company is actively exploring a range of collaboration opportunities, particularly in the hydrogen energy sector to support Canada’s transition towards clean energy. Hydrogen-fueled cars offer advantages such as longer range and quicker refueling compared to electric vehicles, but their widespread adoption necessitates significant investment in new infrastructure, a cost many companies are hesitant to undertake as they focus on expanding their electric vehicle programs.
Hyundai has shown a strong commitment to hydrogen as a potential fuel source for its vehicles, especially in the realm of heavy-duty trucks and vehicles. This strategic move contrasts with some competitors like Stellantis and General Motors, who have recently discontinued their hydrogen fuel cell technology development programs citing uncertainties in the sustainable fuel cell business path.
Despite the risks associated with investing in hydrogen-fueled cars, Hyundai’s substantial market share in Canada, trailing only behind Toyota, Ford, and General Motors, underlines the viability of a potential partnership with the Canadian energy sector. With Canadians purchasing over 146,000 Hyundai cars and more than 94,000 Kia vehicles in 2025, Hyundai’s collaboration with the Canadian energy sector could leverage advancements in hydrogen technology and fuel sources across the country.
The company’s dedication to hydrogen-fueled vehicles has not been without challenges, as evidenced by the recall of nearly 1,600 NEXO vehicles in Canada and the United States in 2024 due to fuel leak and fire risks.