The first offshore fuel cell system plant for South Korea’s biggest carmaker Hyundai Motor Group will be established in Guangzhou, China, the automaker said Friday.

The automotive group said it signed an investment contract with China’s Guangdong provincial government to establish an offshore fuel cell system production facility in Guangzhou there.

The investment is part of its efforts to advance its leadership in the global hydrogen industry, and to support the industry rapidly growing in China, the company explained.

The envisioned plant will initially produce 6,500 fuel cell systems a year, and gradually increase capacity in line with market demand, Hyundai said.

The fuel cell systems that will be produced in the plant are to be the same ones that are used for Hyundai Motor’s Nexo fuel cell electric sport utility vehicles, the company added.

Construction is to begin next month and be completed in the second half of 2022, the company added.

“The Guangzhou plant will leverage the group’s extensive expertise in fuel cell system production to secure a technological leadership position in China’s rapidly developing hydrogen industry,” Hyundai said in its press release.

China announced a road map last year to foster a hydrogen economy, with the goal to have 1 million fuel cell electric vehicles for commercial use on its roads by 2035.

As for Hyundai Motor Group, the automaker has its own long-term plan, dubbed “Fuel Cell Vision 2030,” outlining its commitment to produce 700,000 fuel cells annually to meet demand from various industry sectors, the company explained.

Hyundai also recently launched HTWO, its new brand for hydrogen fuel cell systems.

By Jo He-rim (herim@heraldcorp.com)