Audi and Hyundai to jointly develop hydrogen fuel cell vehicles to share costs and accelerate profitability

Audi and Hyundai Motor said they will work together to develop fuel cell vehicles. Hyundai has accumulated a lot of technical knowledge in the development of the ix35 fuel cell SUV and its successor Nexo. This cooperation will give Audi and other brands of the Volkswagen Group the right to access Hyundai's parts.

On June 20, Hyundai Motor said in a statement that the two automakers have reached a multi-year patent cross-licensing agreement that covers a wide range of fuel cell electric vehicle components and technologies, and covers and benefits subsidiaries of both companies, including Kia and Audi's parent company Volkswagen Group. The term of the agreement was not disclosed. The cooperation will leverage the collective research and development capabilities of the two companies in fuel cell technology to enhance their respective positions in the fuel cell electric vehicle market.

Audi R&D chief Peter Mertens said in a statement that cooperation is a wise move to achieve breakthroughs in fuel cell technology. Audi is responsible for the development of fuel cell technology for the Volkswagen Group and will make full use of the modern fuel cell component supply chain.

Last year, Hyundai Mobis's parts manufacturing division opened a fuel cell vehicle core component production system in Chungju, South Korea, with an annual production capacity of 3,000 complete powertrain fuel cell modules, which are composed of fuel stacks, drive motors, power electronics components and hydrogen fuel power supply units. Mobis plans to increase the plant's production capacity to tens of thousands of modules in the future based on market demand.

Fuel cell vehicles, powered by hydrogen tanks and fuel cell technology that emits only heat and water, are a competitor to pure electric vehicles as they offer a zero-emission, pollution-free alternative to gasoline and diesel engines, which are criticized for emitting polluting gases and harmful pollutants, but their sales have been hampered by high prices and a lack of hydrogen refueling infrastructure.

Hyundai hopes the partnership with Audi will create greater demand for its ix35 and other models and reduce costs to make fuel cell technology profitable. "We want to provide more opportunities for our parts suppliers and hope they can compete with each other and with other suppliers, and competition will reduce costs," said Sae Hoon Kim, head of Hyundai's fuel cell research and development department. Kim said the tightening of EU carbon emissions limits in 2025 will increase demand for hydrogen-powered cars.

Hyundai sold 200 fuel cell vehicles last year and expects to sell thousands this year, but Kim said profitability of fuel cell vehicles has yet to be strengthened. He added: "Profitability can only be achieved if Audi and Hyundai sell 100,000 to 300,000 fuel cell vehicles a year."

As regulators around the world push for lower emissions, automakers are sharing the cost of developing environmentally friendly technologies to replace internal combustion engines. General Motors and Honda will work together to develop hydrogen-powered electric vehicles that are expected to go on sale in 2020, and BMW is also working with Toyota.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.