Stellantis Exits Hydrogen Fuel Cell Development Amid Infrastructure and Cost Challenges
Stellantis, the automotive conglomerate behind brands like Chrysler, Citroen, Fiat, Jeep, and Peugeot, has officially abandoned its hydrogen fuel cell vehicle program. The company cited limited hydrogen refueling infrastructure, high capital costs, and insufficient consumer incentives as key reasons for the decision. This marks a significant reversal from its January 2024 announcement, where Stellantis promised to launch hydrogen-powered commercial vans with ranges up to 500 kilometers.
The shift comes just months before production was set to begin in France and Poland this summer. Stellantis assured that the move would not result in layoffs, with affected employees reassigned to other projects. However, the company must now navigate its exit from a partnership with Symbio, a fuel cell manufacturer in which it acquired a one-third stake in 2023.
Stellantis is not the first automaker to retreat from hydrogen. Toyota, once a vocal advocate for fuel cell technology over battery electric vehicles (BEVs), has gradually pivoted toward batteries. Today, Toyota primarily markets its third-generation fuel cells for heavy industrial use rather than passenger cars.
Hydrogen has long been championed by fossil fuel companies, automakers, and energy-scarce nations as a clean alternative to oil and gas. The promise of emission-free energy derived from water was enticing, especially since hydrogen production and distribution could leverage existing oil and gas infrastructure. However, hydrogen’s practical challenges have proven insurmountable.
One major issue is energy density. Hydrogen is far less efficient than gasoline or diesel, requiring extensive containment measures to prevent leaks. Producing clean hydrogen at scale is also problematic. While electrolysis—splitting water into hydrogen and oxygen using renewable energy—is possible, it demands massive electricity generation. A 2021 estimate suggested doubling global electricity output would be necessary to support widespread hydrogen use.
Refueling infrastructure presents another hurdle. Retrofitting gas stations with hydrogen tanks would require enormous investment, yet demand remains weak. Toyota’s Mirai, the flagship hydrogen car, has sold just 28,000 units since 2014. In the U.S., only the Mirai, Hyundai Nexo, and Honda CR-V e-FCEV are available, paling in comparison to the dozens of BEV models on the market.
With these obstacles, hydrogen fuel cell vehicles appear increasingly impractical. Stellantis’ exit underscores a broader industry realization: the future of clean transportation lies elsewhere. As automakers and governments redirect resources toward battery technology and charging networks, hydrogen’s role in passenger vehicles seems destined to fade. The focus now shifts to refining BEVs and exploring other sustainable alternatives—leaving hydrogen as a niche solution at best.
