Hyundai Motor Group, a South Korean car manufacturer on the Fortune Global 500 List, broke ground on its hydrogen fuel cell system project in Guangzhou Development District on March 2.

The project was signed in the district on January 15th and started construction in less than two months. This is the first time Hyundai has launched its hydrogen fuel cell system project outside South Korea. It’s also the first hydrogen fuel cell system plant in China.

According to Guangzhou Development District, the newly-established Hyundai Motor Hydrogen Fuel Cell System (Guangzhou) Co., Ltd., is a wholly owned subsidiary of Hyundai Motor Group. The company will feature R&D and manufacturing functions while actively seeking local partners that are related to hydrogen energy such as tram and generator manufacturers.

Covering an area of 207 thousand square meters, the plant is expected to complete construction in 2022. And its total investment is expected to reach 8.5 billion yuan by 2030.

Hydrogen energy is known as a clean and efficient alternative energy. Based on an analysis by China’s Society of Automotive Engineers, new energy vehicles will take up more than 50 percent of the auto market in China by 2035. The Chinese government recently released its vision to develop new energy vehicles and has been supporting the industry with policies.

Hyundai Motor Group is ranked 84th in the 2020 Fortune Global 500 List, and is one of the giants in the field of hydrogen vehicles worldwide. Chung Eui-Sun, Chairman of Hyundai Motor Group, said the Guangzhou project is the first step to cooperation with Chinese partners in the field of new energy. “With the support of the Chinese and South Korean governments, we will build a hydrogen ecosystem and benefit the people of both countries.”

The new energy industry is one of the pillar industries of Guangzhou Development District.

It is estimated that the industry sector output of the district will exceed 20 billion yuan by 2025 and then hit 200 billion yuan by 2030.