Hyundai has expressed interest in potentially collaborating with the Canadian hydrogen energy industry, the company informed CBC News on Thursday. This move aligns with the South Korean automaker’s focus on decarbonized vehicles as the future of the automotive sector. The announcement follows the recent signing of a memorandum of understanding between Canada and South Korea, outlining cooperation in various key sectors such as auto and battery manufacturing.
Although Hyundai currently has no immediate plans to establish an auto manufacturing facility in Canada, a company spokesperson stated that they are exploring numerous collaboration opportunities, including within the hydrogen energy sector, to support Canada’s transition towards clean energy. Hydrogen-fueled vehicles offer advantages such as longer range and quicker refueling compared to electric cars. However, broad adoption would necessitate developing new infrastructure for hydrogen vehicles, a cost that most companies are hesitant to undertake as they expand their electric vehicle initiatives.
Hyundai has placed a significant focus 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, noted that Hyundai’s strategy acknowledges the importance of the current hydrogen market, particularly for trucks and heavy vehicles. In 2020, the company unveiled the world’s first heavy-duty commercial trucks powered by hydrogen.
In contrast to some rivals who have discontinued their hydrogen fuel cell technology programs due to uncertainties, Hyundai remains committed to pursuing this avenue. Stellantis and General Motors are among the companies that have halted their hydrogen initiatives. Hyundai’s market share in Canada, standing at approximately 12%, positions it closely behind Toyota, Ford, and General Motors. The company sold more than 146,000 Hyundai cars and over 94,000 Kia vehicles in Canada in 2025.
Given its substantial market presence, a potential partnership between Hyundai and the Canadian energy sector appears logical. Volpe highlighted the potential for a nationwide collaboration, citing advancements in hydrogen technology in British Columbia and fuel sources in Quebec. Despite the company’s investment in hydrogen-fueled vehicles, it has faced challenges, including a recall of nearly 1,600 NEXO vehicles in Canada and the United States in 2024 due to fuel leak and fire risks.
