Japanese automaker Honda has decided to modify its production strategy for fuel cell modules. fuel cell modules in Moka City, Japan, in response to recent changes in the global hydrogen market environment. in Moka City, Japan, in response to recent changes in the global hydrogen market environment.
Adjustments in production capacity and schedule
Honda had initially planned to start operations before the end of fiscal 2028 with a plant dedicated exclusively to manufacturing next-generation fuel cell modules, reaching an annual capacity of 30,000 units.
This facility would be developed on the infrastructure of a former powertrain factory as part of a broader decarbonization effort. However, due to the evolving global demand and commercial environment for hydrogen, the company decided to reduce the planned production capacity and postpone the start of full-scale operations.
This implies that the project no longer meets the criteria for the subsidy offered by Japan’s Ministry of Economy, Trade and Industry (METI) under the Green Transformation (GX) initiative, so the company has opted to withdraw from the program.
Fuel cells as a strategic pillar
With more than three decades of investment in hydrogen and fuel cell electric vehicle technology fuel cell electric vehicles (FCEVs) vehicles (FCEVs), Honda remains steadfast in its commitment to achieve carbon neutrality by 2050. by 2050. Its next-generation fuel cell module is designed for application in diverse sectors such as electric vehicles, heavy machinery, stationary generators and commercial fleets.
In addition to continuing the development of this type of technology, Honda seeks to reposition its strategy to better adapt to changing market conditions and open the way to new opportunities within the hydrogen business, considered by the brand as one of its priority growth areas.
Impact on the supply chain
The decision to revise the plan also affects the shaping of an integrated supply chain in Japan for this type of clean technology. Although the project at Moka is not proceeding at the pace originally planned, the automaker makes it clear that the fuel cell production remains remains key to its future portfolio.
In this scenario, Honda is committed to a progressive implementation of the plant and maintains the goal of scaling up production when market conditions allow, thus reaffirming its long-term vision within the hydrogen energy ecosystem.
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Source: Honda
Photo: Shuttersrtock
