Hyundai Invests $670M in Hydrogen Fuel Cell Production to Power Next-Gen Construction Equipment
New South Korean Plant Will Produce Hydrogen Fuel Cells and Electrolyzers by 2027
Hyundai Motor Co. has broken ground on a new hydrogen fuel cell production facility in Ulsan, South Korea. The plant marks a major step toward advancing hydrogen energy and expanding the country’s clean manufacturing base. Set for completion in 2027, the 43,000-sq-m facility will mass-produce 30,000 fuel cell units annually. Hyundai will also begin domestic production of polymer electrolyte membrane (PEM) electrolyzers — key systems for generating green hydrogen through electrolysis. The project represents a 930 billion KRW (about $670 million USD) investment. Will we see some of these new hydrogen fuel cells in off-highway equipment in America?
We’re not sure. But Hyundai Construction Equipment (HCE) continues to push forward with zero-emissions technology, so we’re hoping yes! The company recently unveiled two machines at bauma 2025 that highlight this dual investment in battery-electric and hydrogen power. The HX19e is HCE’s first battery-electric mini excavator. It runs on either a 32- or 40-kWh lithium-ion battery pack, delivering up to ten hours of operation and performance on par with its diesel counterpart. Hyundai also showcased the HW155H, a hydrogen fuel cell-powered wheeled excavator prototype (see photo below). The 15-ton unit uses a 90-kW fuel cell system and low-pressure hydrogen storage integrated into its counterweight. The machine achieves about 12 hours of operation, emitting only water vapor.
From Engines to Electrolyzers
The new hydrogen fuel cell production site sits on the grounds of a former internal combustion engine transmission plant — a symbolic move showing Hyundai’s shift from legacy powertrains to clean energy systems. The company will produce next-generation hydrogen fuel cells to power passenger vehicles, commercial trucks, marine vessels and (yes!) construction equipment. From the press release:
“This plant embodies Hyundai Motor Group’s strategic commitment to advancing the hydrogen society transition,” Vice Chair Chang said in his opening remarks. “It will serve as a critical foundation for securing national economic growth momentum and establishing Korea’s leadership in the global hydrogen industry.”
Up Next: Hydrogen Combustion vs. Fuel Cells
Hyundai’s new Ulsan plant supports broader efforts across its divisions, including Hyundai Construction Equipment, to commercialize hydrogen systems for off-highway use. As infrastructure and fueling networks grow, construction and industrial sectors could become early adopters of hydrogen power. Not all hydrogen systems are the same. While Hyundai leans into fuel cell technology, other OEMs are experimenting with hydrogen combustion engines as a bridge between diesel and zero-emission equipment. Compact Equipment recently explored both paths in “Hydrogen Combustion vs. Fuel Cells: Where Small Construction Machines Fit into the H2 Movement.” Check out that article right here.
Keith Gribbins is publisher of Compact Equipment.
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