Honda backs down on planned fuel cell module production
Honda has altered its previously announced strategy to build a dedicated facility for next-generation fuel cell module production in Moka City, Tochigi. Originally, the company aimed to begin operations within the fiscal year ending March 2028, targeting an annual production capacity of 30,000 units.
The factory was planned on the grounds of Honda’s former Powertrain Unit Factory. However, the manufacturer said in an official statement that it will “reduce initial production capacity and delay the timing to begin full production” in light of “recent changes in the global hydrogen market environment.”
This revised plan means Honda will no longer receive a government subsidy under the Japanese Ministry of Economy, Trade and Industry’s GX (green transformation) project, which requires operation to start by the end of FY2028 with a capacity of at least 20,000 units per year. Honda confirmed that it has “decided to opt out of the program as its revised plan will no longer fulfil the requirement.”
The company remains committed to hydrogen, stating: “Honda was one of the first companies to focus on the potential of hydrogen toward the realization of a carbon-neutral society and has been conducting research and development of hydrogen technologies and FCEVs for more than 30 years.”
Honda’s next-generation fuel cell module is being developed independently as part of its goal to achieve carbon neutrality across all products and corporate activities by 2050. The manufacturer has identified four domains for its fuel cell technologies: fuel cell electric vehicles (FCEVs), commercial vehicles, stationary power generators and construction machinery. With the CR-V e:FCEV, Honda currently also has a compact plug-in hybrid SUV with hydrogen fuel cell electric drive on the market.
The company did not provide a revised production start date or capacity figure following this announcement. However, the strategic shift underlines the uncertainties facing fuel cell scale-up in the passenger vehicle segment, even as Honda continues to present hydrogen as a pillar of its long-term decarbonisation roadmap.
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