Honda is to begin production of a new hydrogen fuel cell system developed with GM

TOKYO, Feb 2 (Reuters) – Japan’s Honda Motor Co ( 7267.T ) said it will start producing a new hydrogen fuel cell system developed jointly with General Motors Co ( GM.N ) this year and gradually increase sales this decade, in an attempt to expand the hydrogen business.

Honda will target annual sales of around 2,000 units of the new system by the middle of this decade, the company said Thursday, with a goal of increasing that to 60,000 units per year by 2030.

The Japanese automaker is seeking to expand the use of its new system not only for its own fuel cell electric vehicles (FCEVs), but also commercial vehicles such as heavy trucks, as stationary power stations and in construction machinery.

Honda will start production of the hydrogen fuel cell system through its joint venture with GM this year, Honda senior executive Shinji Aoyama told reporters at a company event in Tokyo.

With the “next generation” system, the company aims to more than double the durability compared to its older fuel cell system and cut costs by two-thirds.

“While commercial vehicles are in use worldwide, they are likely to see electrification just as with passenger cars,” said Tetsuya Hasebe, general manager of Honda’s hydrogen business development division.

That will likely lead to a divergence in trucks that use batteries and those that run on fuel cells, he added.

Reporting by Daniel Leussink; Editing by Chang-Ran Kim and Jamie Freed

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