Hydrogen car-related stocks plummet… What the hell happened to Hyundai

Hydrogen stocks plummeted. This is due to the influence of the news that Hyundai Motor Company has temporarily suspended the Genesis hydrogen car project, which it was aiming to launch in 2025. However, some analysts say that the drop is excessive given that there is no change in Hyundai Motor’s hydrogen commercial vehicle development plan.

Sanga Frontek closed at 51,500 won, down 12.86% on the 28th. The company produces membranes, a key material for polymer electrolyte fuel cells (PEMFCs). On this day, Iljin Hysolus (-9.87%), a producer of hydrogen storage containers, Hyosung Advanced Materials (-6.94%), which produces carbon fiber, a key material for hydrogen tanks, and moisture control devices and membrane electrode assemblies (MEA) for hydrogen vehicles ) and Kolon Industries (-3.84%), which supplies them, also fell all at once. Doosan Fuel Cell, which produces hydrogen fuel cells for power generation, is not directly related to hydrogen cars, but it closed down by 4.59%.

When it was reported that Hyundai Motor Company temporarily halted the development of the Genesis hydrogen car, it is interpreted that investor sentiment in the hydrogen economy as a whole deteriorated. According to industry sources, Hyundai Motor Company concluded that the development of the 3rd generation hydrogen fuel cell did not meet its original goal and reduced the role of the existing fuel cell department. In response, a Hyundai Motor official said, “A technical problem was discovered during the mid-term review of the research results, so we are reorganizing the organization in charge and re-establishing the R&D schedule. ” he explained.

In the meantime, hydrogen-related stocks have been given high valuations (share price relative to earnings) in anticipation of future growth potential. Some are concerned that the growth potential of hydrogen stocks may be undermined by automakers’ suspension of development of hydrogen cars.

However, concerns are raised that the hydrogen fuel cell is excessive because it was originally planned to be mainly used for medium and large commercial vehicles, ships, trams, and aircraft. Hydrogen fuel cells are lighter and have higher energy density than secondary batteries of electric vehicles. It is evaluated that it is suitable for commercial vehicles and ships that move long distances or transport heavy objects. Kim Jin-woo, a researcher at Korea Investment & Securities, said, “There is no change in Hyundai Motor’s plans and strategies for launching hydrogen commercial vehicles.

By Seo Hyeong-gyo, staff reporter seogyo@hankyung.com

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