Honda scales back and delays plans for hydrogen fuel cell plant

Japanese automaker Honda says it plans to scale back as well as delay plans to begin operating a dedicated hydrogen fuel cell production plant in Japan, blaming “recent changes” in the global hydrogen market.

Honda announced at the end of 2024 that it planned to build a new manufacturing plant in Moka City, Tochigi Prefecture, Japan, dedicated to producing next-generation hydrogen fuel cell systems.

The production plant was set to repurpose part of the land and buildings of a former Honda Powertrain Unit Factory in Moka City, which discontinued production of automobile powertrain components a few months earlier.

At the time of announcement, the new fuel cell production plant was planned to begin operating some time before the end of the fiscal year ending March 31, 2028 (FY2028) and would boast an annual production capacity of 30,000 units.

However, due to what Honda described this week as “recent changes in the global hydrogen market environment”, the company has reassessed its plans, deciding instead to scale back annual production capacity to “more than 20,000 units”, and to delay its start.

Honda did not give any indication of when it expects the facility to begin operations, only that it would not be capable of starting operation before the end of FY2028. This, in turn, means that the project will not qualify to receive a government subsidy designed to support the development of clean energy supply chains.

If and when the project begins operations, it will be the first Honda facility dedicated to the production of its in-house developed fuel cell system.

Honda remains one of the few well-known carmakers to remain focused on developing a hydrogen fuel cell business, considering it one of its new core businesses.

Honda has identified four core segments prime to utilise its fuel cell modules, including fuel cell electric vehicles (FCEVs), commercial vehicles, stationary power generator, and construction machinery.