Hyundai told CBC News on Thursday it is exploring “possible collaboration” with Canada’s hydrogen energy sector, as the South Korean automaker bets the future of its auto industry on carbon-free vehicles.

The revelation came days after Canada and South Korea signed a memorandum of understanding to cooperate in several key industries, including automotive and battery manufacturing.

A Hyundai spokesperson said the company currently has no plans to open a car manufacturing plant in Canada, but is considering “various” opportunities to collaborate.including the hydrogen energy sector “to support Canada’s transition to clean energy.”

hydrogen fuel car Longer range and faster refueling than an electric car can charge. However, once widely adopted, New infrastructure needs to be created In the case of hydrogen vehicles, it’s a cost that most companies don’t want to incur as they expand their EV programs.

Flavio Volpe, president of the Automotive Parts Manufacturers Association in Toronto, said Hyundai is betting “biggest” on hydrogen as a potential fuel source for its vehicles, while some competitors have retreated to hydrogen technology.

“They know that the future of hydrogen starts with today’s hydrogen: trucks and heavy vehicles,” Volpe said. The company unveiled the world’s first heavy-duty commercial truck in 2020.

Hyundai leans toward hydrogen as rivals retreat

Stellantis Production discontinued For example, last summer’s hydrogen fuel cell technology development program and General Motors did the same thing In October, he said the path to a sustainable fuel cell business was “long and uncertain.”

“Even if there are only a few companies participating in a market that represents 10% of the car market, globally, that’s equivalent to 10 million cars a year. And the production plants are 250,000 cars a year. So I’m not too worried that it’s a niche market,” Volpe said.

“The Italians have built their car sector in a niche market making Ferraris, Lamborghinis and Maseratis. As long as there aren’t 100 companies making Ferrari-type cars, those are safe too.”

Hyundai, which owns Kia Motors, 12 percent Its market share in Canada is behind Toyota, Ford and General Motors. Canadians bought more than 146,000 units hyundai car Over 94,000 kia motors In 2025.

Given that market share, Volpe said a potential partnership between Hyundai and Canada’s energy sector makes sense. “Given advances in hydrogen technology in British Columbia to advances in fuel sources in Quebec, this could be a pan-Canadian plan.”

The company’s investment in hydrogen-powered vehicles is not without risks. Approximately 1,600 NEXO vehicles were forced to be recalled in Canada and the United States in 2024 This is because there is a risk of fuel leakage or fire.