Honda is one of the few automakers with a hydrogen-powered vehicle on the market in the U.S., but it is one of many with a hand in fuel-cell technology. It recently launched the CR-V e:FCEV, which uses both a hydrogen fuel-cell system and a battery that can be recharged with a plug.
But, passenger vehicles aren’t Honda’s only avenue for the tech. It’s also focused on using fuel cells to power commercial vehicles, construction equipment, and to provide stationary power. In order to pursue the next big thing in hydrogen, Honda has announced that it is investing in a new facility in Japan to produce its next-generation fuel-cell system.
Honda’s New Fuel-Cell Plant
Honda’s Powertrain Unit Factory in Moka City in Japan’s Tochigi Prefecture stopped production of vehicle parts in October of this year, and Honda plans to repurpose part of this property and its buildings for the new fuel-cell factory. Honda is targeting the end of March 2028 to begin independently producing its latest fuel cells, which is technology Honda is working on independently — this is not part of Honda’s joint venture with General Motors, which is producing fuel cells in the U.S.
When up and running, Honda expects this new, 311,000-square-foot facility to be able to produce 30,000 units per year. The Japanese government is getting in on the project, too, with the Ministry of Economy, Trade, and Industry providing a subsidy of up to 18.4 billion yen, or about $95 million.
Honda’s Hydrogen Goals
Honda has multiple goals with the expansion of its fuel cell business. One is to capture more of the market share of commercial fuel cell vehicles. Honda aims to control five percent of the fuel cell truck market by 2030, and expand that to the lofty goal of 30-percent market share by 2040.
Another goal is decarbonization. Honda intends to achieve carbon neutrality for all of its products and corporate activities by 2050, and it sees hydrogen as having a role in that. “The hydrogen cycle begins with renewable energy and consists of three phases – generate, store/transport and use,” said Arata Ichinose, Honda’s Head of Business Development Supervisory Unit, in a 2023 interview. “Electricity derived from renewable energy can be converted into ‘green hydrogen’ using water electrolysis technology. By utilizing this hydrogen, electricity can be stored as hydrogen, and at the same time, be transported by land and sea, and pipeline. By utilizing fuel cell systems, environmentally-responsible electricity can be produced without CO2 emissions.”
Honda launched its latest generation of fuel cell this year, which it says it less costly, more efficient, and more durable than the previous fuel cell used in the Honda Clarity. Honda is currently developing the next-generation system that will be built in its new facility. It says it aims to make the new system half the cost and twice as durable as the current generation developed with GM.
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