Honda has postponed the launch of its next-generation hydrogen fuel cell factory, pushing back the production timeline with no new start date confirmed. Citing reports from Nikkei and Jiji Press, the company now plans to reduce the facility's annual capacity to fewer than 20,000 units, down from the originally projected 30,000. The plant, located in Tochigi Prefecture, was initially slated to begin operations in fiscal 2027 (April 2027–March 2028).
Announced in December 2024, the Moka-based plant was designed to produce Honda's next-generation hydrogen fuel cell systems for use in fuel cell vehicles (FCVs). While FCVs are positioned as a cleaner alternative to gasoline and diesel models, high production costs and slow progress in building hydrogen refueling infrastructure have curbed adoption, leading Honda to revise its production strategy.
The project had been approved for up to JPY14.8 billion (approx. US$103 million) in government subsidies from Japan's Ministry of Economy, Trade and Industry. However, Honda has decided to relinquish the funding following the production delay.
Honda's new fuel cell system was designed to halve manufacturing costs and double durability. However, with the factory delay and scaled-back output, the company is likely to revise its long-term targets, which previously aimed for 60,000 units annually by 2030 and several hundred thousand by the late 2030s.
The production shift may also impact Honda's collaboration with Isuzu Motors. The two companies have been jointly testing fuel cell trucks on public roads and had planned to roll out a large co-developed FCV truck around 2027.
Article edited by Jack Wu
