--- title: "Stellantis terminates hydrogen fuel technology development. Should China continue to persist?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/32063038.md" description: "Produced by Zhineng Auto In July 2025, the world's fourth-largest automaker Stellantis officially announced the termination of its hydrogen fuel cell project, symbolizing that the hydrogen fuel passenger vehicle route has once again been explicitly abandoned by mainstream automakers. The only ones still persisting are Toyota, Honda, Hyundai, and BMW, and most of their efforts are focused on commercial vehicles and non-passenger vehicle segments. Market, technological, and infrastructure pressures have caused the hydrogen energy path for passenger vehicles to gradually lose strategic priority globally. Meanwhile, China's fuel cell industry has entered the "deep water zone" in the commercial vehicle sector..." datetime: "2025-07-22T00:47:47.000Z" locales: - [en](https://longbridge.com/en/topics/32063038.md) - [zh-CN](https://longbridge.com/zh-CN/topics/32063038.md) - [zh-HK](https://longbridge.com/zh-HK/topics/32063038.md) author: "[芝能-烟烟](https://longbridge.com/en/profiles/11273666.md)" --- # Stellantis terminates hydrogen fuel technology development. Should China continue to persist? ​​ Produced by Zhineng Auto In July 2025, the world's fourth-largest automaker Stellantis officially announced the termination of its hydrogen fuel cell project, symbolizing the mainstream automakers' clear rejection of the hydrogen fuel passenger vehicle route once again. The only companies still persisting are Toyota, Honda, Hyundai, and BMW, with most efforts focused on commercial and non-passenger vehicle sectors. Market, technological, and infrastructure pressures have gradually stripped hydrogen energy for passenger vehicles of its global strategic priority. Meanwhile, China's fuel cell industry has entered the "deep-water zone" in the commercial vehicle sector, building a partially mature system covering supply chains, demonstration applications, and technological advancements under policy-driven initiatives.   Stellantis' decision reflects both the global dilemma of hydrogen vehicle development and a growing divergence from China's hydrogen energy development path in the heavy-duty truck sector. ​   ![Image](https://pub.pbkrs.com/social/topic/ce9ab2d87f530e4b8b8c681976376209?x-oss-process=style/lg) **Part 1** **Stellantis' Exit:** **The Systemic Contraction of the Hydrogen Fuel Passenger Vehicle Path**   Stellantis' retreat from hydrogen fuel cell technology is not an isolated case but a collective choice by automakers facing real-world challenges. The originally planned mass production of hydrogen-powered light commercial vehicles in France and Poland was ultimately canceled, reflecting the commercial unsustainability of the hydrogen energy product path.   The direct cause of Stellantis' strategic adjustment stems from refueling infrastructure.Take California as an example: by 2025, fewer than 50 hydrogen refueling stations were operational, and Shell's closure of seven stations directly reduced regional supply capacity by 12%. Hydrogen stations are complex to maintain and costly to operate, with each station requiring investments of tens of millions of yuan, far exceeding the cost of DC fast-charging stations. Meanwhile, the profitability of hydrogen stations heavily depends on vehicle scale, creating a vicious cycle.   More pressing is the issue of usage costs.   In the U.S., the price of a kilogram of hydrogen has surged from $13 to $36, with a full tank for a Mirai costing nearly $200. In contrast, the cost of charging an electric vehicle at home remains under $10 for most households.   Issues like frozen pump nozzles, long refueling queues, and equipment failures further degrade the user experience. Even Toyota's $15,000 hydrogen fuel subsidy cannot mask the structural flaws in fuel usage.   We can observe the rapid depreciation of vehicle value.In the U.S. market, the Mirai's new car price is $36,000, while its resale value plummets to $2,000, with a near-zero retention rate, leaving users with severe losses. Scarce infrastructure, high costs, and poor user experience form the three main reasons for the collapse of the hydrogen passenger vehicle business model.   Technologically, even though third-generation fuel cell systems have extended range to over 800 km and reduced costs by one-third, they still cannot resolve the dilemma of "insufficient infrastructure leading to poor vehicle usability, and low vehicle adoption leading to unprofitable infrastructure." Additionally, global hydrogen supply remains highly regionalized, with unresolved challenges like high transportation costs and elevated carbon emissions from hydrogen production, making it difficult to establish a scalable closed-loop system for hydrogen passenger vehicles. Stellantis' choice reflects a clear industry consensus: before 2030, hydrogen fuel passenger vehicles will struggle to form a profitable business model.   Multiple mainstream automakers globally, such as Hyundai delaying the new Nexo, Honda scaling back its hydrogen fuel product line, and BMW and Toyota limiting efforts to R&D and small-scale trials, all indicate a retreat from this technological path in the passenger vehicle market.   ![Image](https://pub.pbkrs.com/social/topic/9588aad41c0abd7cd6699b11f527aefb?x-oss-process=style/lg) **Part 2** **Commercial Hydrogen Energy Enters the "Deep-Water Phase":** **China's Path: Reality and Challenges** Unlike the global retreat from hydrogen passenger vehicles, China's exploration of fuel cells in the commercial vehicle sector is entering a phase of structural adjustment.   Especially under the guidance of the demonstration city cluster policy implemented since 2020, fuel cell vehicles have expanded from light trucks and small buses to heavy logistics vehicles, sanitation trucks, and cold-chain transportation—scenarios with high payloads and long ranges—forming a localized ecosystem with a certain degree of industrial chain closure.   ● Technologically,China's fuel cell system performance has made leapfrog progress in recent years. By 2025, domestic single-stack power output exceeded 400 kW, with system-rated power generally reaching 280 kW and range exceeding 600 km. The capacity of hydrogen storage cylinders increased from 140L to 450L, with heavy-duty trucks capable of storing up to 64.26 kg of hydrogen.   Companies like Jie Hydrogen Technology and Hydrogen Innovation have also made significant strides in system integration efficiency, cold-start capability, and system lifespan.   ● In terms of the industrial chain,data from the China Automotive Technology and Research Center shows that the localization rate of core components like fuel cell stacks, air compressors, and hydrogen circulation systems has exceeded 90%. Materials like membrane electrodes and carbon paper remain less localized (below 15%) but are entering a critical phase. Driven by large-scale subsidies, the domestic industrial chain has the potential to gradually replace imports. ● In terms of infrastructure,demonstration city clusters have cumulatively built over 180 hydrogen refueling stations, mainly concentrated in Guangdong, Shanghai, and the Beijing-Tianjin-Hebei region, with 35 MPa as the mainstream pressure level. Current hydrogen prices have fallen from highs to 30-40 yuan/kg, with some subsidized regions even below 30 yuan/kg.   Hydrogen supply stability is gradually improving, particularly in the construction of "hydrogen corridors" in regions like the Beijing-Shanghai and Yangtze River Delta areas. ● In terms of market structure,by Q1 2025, China's fuel cell vehicle fleet approached 30,000 units, with heavy-duty trucks accounting for 58% and passenger vehicles remaining minimal, concentrated in demonstration vehicles in Shanghai. In heavy-duty truck scenarios, hydrogen vehicles offer advantages with refueling times under 15 minutes and single-trip ranges exceeding 600 km. Policy-driven initiatives remain key to industrial development. A hydrogen-powered heavy-duty truck in Beijing or Shanghai can receive over 1 million yuan in combined central and local subsidies (which is unsustainable), with post-subsidy prices even lower than traditional diesel trucks. Some provinces also offer highway toll waivers and hydrogen price subsidies, forming the foundation for current commercial operations.   ● From the perspectives of system costs, operational stability, and long-term service life,fuel cell systems remain far from achieving self-sufficiency under reduced subsidies. Vehicle costs remain high, electrolysis-based production costs are stubbornly elevated, and the proportion of green hydrogen remains limited. The physical properties of hydrogen storage and transportation also slow the formation of economies of scale.   A greater challenge lies in the sustainability of demonstration effects. The impending conclusion of the city cluster demonstration program in 2025 will mark a watershed for future industrial policy. If subsidies are withdrawn before a market system is established, the current policy-driven "demonstration bubble" could lead to short-term industry contraction.   Thus, starting in 2026, China's fuel cell industry will pivot toward "cost reduction, efficiency improvement, scenario focus, and stable operations."   **Summary** Stellantis' strategic retreat is a visible manifestation of the systemic risks in the global hydrogen passenger vehicle path. Before market, technological, and infrastructure conditions form a viable closed loop, automakers face significant uncertainty and potential losses in mass-producing hydrogen passenger vehicles. The "futuristic" appeal of hydrogen in the passenger market is giving way to the present-day practicality of electric and hybrid vehicles. China's alternative path—focusing on commercial scenarios like heavy-duty trucks and sanitation vehicles—is deepening. Leveraging policy subsidies, it has established a preliminary industrial foundation in core component localization, system stability, and operational ecosystems. However, this path is approaching a validation phase: whether it can achieve self-sufficiency post-subsidy will determine its success in transitioning from the "deep-water phase" to true scale.​​​​ ### Related Stocks - [N6FD.SG](https://longbridge.com/en/quote/N6FD.SG.md) - [TOYOF.US](https://longbridge.com/en/quote/TOYOF.US.md) - [BMWYY.US](https://longbridge.com/en/quote/BMWYY.US.md) - [TM.US](https://longbridge.com/en/quote/TM.US.md) - [HMC.US](https://longbridge.com/en/quote/HMC.US.md)