Hyundai Mobis has announced plans to build two new hydrogen fuel cell system plants in Incheon and Ulsan in South Korea.
The company has also held a ground-breaking ceremony for one of the new plants located at the Industrial Complex in Cheongna International City, Incheon.
It has planned to invest KRW1.3tn ($1.1bn) in the two new plants, which will produce hydrogen fuel cell stacks.
Both the facilities are scheduled to commence production in the second half of 2023.
Once fully operational, they are estimated to have capacity to produce 100,000 hydrogen fuel cells per year.
Hyundai Mobis president and CEO Sung Hwan Cho said: “Despite uncertainties, including Covid-19, we have decided to make this large-scale investment to secure the market-leading competitiveness in the global fuel cell industry.
“We will continue to invest more in facilities and strengthen our research and development (R&D) capability for the development of the hydrogen industry and expand the ecosystem.”
In 2018, the company established its first fuel cell stack production facility in Chungju, South Korea. It has the capacity to produce around 23,000 hydrogen cell systems per year.
With the addition of new facilities, Hyundai Mobis will have three fuel cell plants in the country.
The company is also planning to expand its production capacity to further diversify its hydrogen business with the completion of the new plants.
Last year, Hyundai Mobis announced plans to set up its second technical centre in India.
The new technical centre was intended to boost software development for autonomous vehicles. It was planned to be built in a new information technology (IT) complex next to its existing one in the Indian city of Hyderabad.