The global hydrogen fuel cell vehicle market is estimated to generate $43,208.3 million by 2031.
Japanese automaker Honda Motor Co announced that it would collaborate with US-based General Motors (GM) to produce a new hydrogen fuel cell system and gradually increase its sales this decade to expand its hydrogen business.
At a company event in Tokyo, Honda senior managing executive director Shinji Aoyama said that the company would commence production of the fuel cell system through its joint venture with GM this year.
Fuel cells use hydrogen and oxygen to create electricity to power the vehicle, instead of battery. A report published by Allied Market Research said that the global hydrogen fuel cell vehicle market secured $923.8 million in 2021 and is estimated to generate $43,208.3 million by 2031, manifesting a CAGR of 45.5% from 2022 to 2031.
Honda intends to double its durability compared to its older fuel cell system and bring costs down by two-thirds.
Last year the company announced its plans to launch an electric vehicle based on hydrogen fuel cells in 2024 based on its bestselling CR-V crossover.
The production of the CR-V variant would begin at its Performance Manufacturing Center (PMC) in Marysville, Ohio. Honda’s latest ventures are a part of its strategy to go fully electric by 2040 and carbon neutral by 2050.
Honda will be making one of the first models to combine a plug-in feature with fuel cell technology, enabling the driver to switch between its onboard battery for shorter trips and hydrogen supply for longer trips.