General Motors Cancels Next-Generation Hydrogen Fuel Cell Research & Development (R&D) Project

According to foreign media reports, General Motors has decided to cancel its next-generation hydrogen fuel cell research and development project and to suspend plans for a $55 million factory in Detroit, USA. The company stated that after evaluation, it believes there is currently no viable development path for this emerging power technology.

Image source: General Motors

On October 10, General Motors announced that it will cease the next-generation hydrogen fuel cell research and development conducted under its HYDROTEC brand. However, the joint venture established with Honda Motor in Brownstown Township (located 20 miles south of Detroit) will continue to operate, shifting its focus to providing power support for data centers.

At the same time, General Motors stated in the announcement: "Although hydrogen energy has development potential in specific high-demand industrial applications such as backup power, mining, and heavy trucks, the hydrogen fuel cell business still faces a long and uncertain path to achieve sustainable development. The high cost of hydrogen energy domestically in the United States and the limited infrastructure restrict consumer acceptance of fuel cell vehicles."

Additionally, General Motors has confirmed that its project in collaboration with auto parts supplier Piston Automotive will be canceled. The project was originally planned to create over 140 jobs in Detroit. In May of this year, it was reported that the project had been paused due to regulatory uncertainties.

General Motors spokesman Stuart Fowle revealed that policy adjustments and the company's reassessment of its business portfolio contributed to this decision. The lack of hydrogen energy infrastructure and the slower-than-expected transition to electric vehicles are key reasons for this strategic adjustment.

Stuart Fowle also noted, "While the decisions of the U.S. Department of Energy are indeed a factor in the overall environment, they are not the sole driving force. We aim to prioritize the allocation of engineering talent, resources, and all available forces to continue advancing the development of electric vehicles."

In March 2024, the U.S. Department of Energy granted $30 million to General Motors for its hydrogen fuel cell project. This funding was part of a total of $750 million provided by the Department of Energy to 52 projects nationwide. In early October this year, the U.S. Department of Energy announced it would terminate 321 financial grants with a total value of $7.56 billion, but did not specify which projects were involved.

However, Stuart Fowle stated that General Motors has not yet received the aforementioned federal funds, and the company is currently negotiating with the U.S. Department of Energy and Piston to determine the next steps following the project's termination. "We have informed our employees of this news, and the next step will be discussions with external stakeholders."

Before General Motors' strategic contraction, Stellantis announced the cancellation of its hydrogen fuel cell research and development project this summer. Previously, automakers such as General Motors, Stellantis, and Toyota had invested heavily in hydrogen energy, viewing it as a viable power technology, especially suitable for heavy-duty vehicles. However, the timeline for market promotion and investment returns for this technology has repeatedly been postponed.

A year ago, General Motors announced its collaboration with Piston on a project in Detroit. The building involved is located along Eight Mile Road and spans 292,550 square feet, originally planned to be General Motors' first standalone hydrogen energy plant. Currently, General Motors states that it will "explore other uses for the facility in collaboration with Piston"; Piston has not yet responded to requests for comment.