General Motors wants to make hydrogen fuel cell electric vehicles (HFCEVs) a reality, and the only way this can happen is by making them more cost-effective for a wider population of drivers. Recent investments in HFCEV production catalyze necessary development and industrial price reductions. Are commercial customers seeing this appear as reduced MSRPs and cheaper battery replacements? Impact investing to GM’s degree is why decarbonized transportation is more normalized daily.
The Reason Behind GM’s Investment
In 2021, GM sank $35 million into hydrogen fuel cells across several plants and projects. The number was a 30% uptick in HFCEV investments of this type from GM compared to 2020. The money is set to go through 2025, so where has the money gone to this point?
GM focuses on commercial and military-grade vehicles by advancing its Hydrotec fuel-cell system for its proprietary Ultium EV batteries. Hydrogen’s reputation for longer ranges makes it the ideal candidate to power fleets. The corporation also has two under-construction battery plants ready to thrive in the U.S.
Finances are also dedicated to improving autonomous vehicles through their subsidiary, Cruise LLC. The two technologies synergize with one another to formulate a safer, more sustainable future for commercial and personal transportation.
How GM Knew It Made the Right Choice
The stock market prices for GM tripled after it announced its financial commitments for HFCEVs and autonomous vehicles. In July 2020, shares were only valued at $23.33, and they skyrocketed to a high of $63.09 shortly after publications caught word of their goals. Though prices have fallen in 2023, they are still significantly higher on average compared to 2020.
GM aimed to hit one million EVs by 2025 through 30 new models. Current market additions include the Chevrolet Bolt EV, Hummer EV pickup and Cadillac Lyriq, with more on the way. The investments yield a more diverse portfolio of options for customers to escalate GM’s reputation of paying attention to market growth and demands.
The hydrogen fuel cell market is on an upward trajectory, with an expected value of $39.86 billion by 2032. Part of this may be due to a shift in urgency. Transitioning to battery-powered EVs feels like old news when electrification requires much more.
For example, companies are expanding their priorities to remove diesel from electric-based hybrid heavy-duty trucks for genuinely zero-emissions operations. Enterprises also want hydrogen because it makes supply chains more dependable. Consider removing mining for expensive, invasive cobalt, lithium and nickel for on-site hydrogen production.
The Partners Behind the Market Shifts
The investments are paying off in more ways than monetarily. GM has embarked on revolutionizing partnerships in an attempt to expedite HFCEVs. The first is Liebherr-Aerospace, which will guide making aviation greener. Sustainable models and fuel for airplanes have been a nebulous field of research, needing more big-name participants to carry adoption into more practical realms.
Here are a few more companies GM has shaken hands with to change the hydrogen fuel cell landscape:
- Navistar and Nikola: For making viable military-grade underwater vessels and trucks.
- Autocar: For designing heavy duty work fleets with Hydrotec fuel cells.
- LG Chem: For assisting with Ultium battery manufacturing.
- Komatsu: For decarbonizing the 930E mining truck and attempting to eliminate diesel-electric hybrids.
- Honda Motor: For developing the HFCEV, Clarity.
GM’s willingness to reach out for guidance demonstrates a positive trend in the climate conversation. Advancements in green transportation require collaboration instead of harboring patents, which is necessary for streamlining batteries and speeding up refueling processes.
Their investments may pay off by altering similar initiatives to reduce exclusivity with decarbonizing technologies and instead share plans with others to discover innovations and improvements.
How GM’s Money Changed HFCEVs
The HFCEV industry was catapulted by GM’s decision to up investment amounts. The company is expanding into new verticals and rewiring how each facet of transportation could operate in a climate-friendly future.
Jane Marsh, Contributor
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