Ground has broken on a hydrogen fuel cell production facility in Ulsan, South Korea for Hyundai, with a price tag of US$640m (KRW930bn).

The 43,000-sq-m plant will be capable of producing 30,000 fuel cell units annually, alongside proton exchange membrane electrolyzers.

Sited at a former internal combustion engine transmission plant, the new facility will make fuel cells for passenger vehicles, commercial trucks and buses, construction equipment and ships.

Fuel cells generate electricity through electrochemical reactions between hydrogen and oxygen, functioning as onboard power generators. Those produced on site will be optimised for different applications.

The electrolyzers generate high-purity hydrogen from water without carbon emissions, with the facility being the first to make the product in South Korea.

The plant will use both human workers and robots. Monitoring systems will be able to detect minute safety hazards to protect workers.

The facility aims to serve as a platform for collaboration among government, local authorities and industry stakeholders.

Jaehoon Chang, Hyundai Motor Group’s vice chair, said: “This plant embodies Hyundai Motor Group’s strategic commitment to advancing the hydrogen society transition.

“It will serve as a critical foundation for securing national economic growth momentum and establishing Korea’s leadership in the global hydrogen industry.”

The factory is able to be expanded to meet market growth. It is due to be completed in 2027.