Quick Takeaways
- Honda Fuel Cell System Manufacturing will end by 2026 as Honda reshapes its hydrogen and electrification roadmap.
- The decision reflects a broader industry shift away from joint fuel cell production toward hybrids and EV-focused investments.
Honda Fuel Cell System Manufacturing will conclude operations by the end of 2026, marking the end of Honda’s fuel cell system production partnership with General Motors. The decision was confirmed through a company announcement outlining Honda’s intent to bring future hydrogen fuel cell development fully in-house while reassessing its broader electrification priorities.
The Michigan-based joint venture was formed in January 2017 as a 50:50 collaboration between Honda and GM, with both companies committing equal investments totaling $85 million. The initiative aimed to reduce fuel cell system costs by sharing suppliers and standardizing core components across both automakers’ hydrogen programs.
Honda Moves Fuel Cell Development In-House After Joint Venture Review
Although the fuel cell collaboration agreement between Honda and GM was first announced in July 2013, Honda stated that recent discussions led both parties to agree on ending production. While the partnership delivered “some positive results,” Honda determined that future hydrogen fuel cell systems would be developed independently as part of its long-term technology roadmap.
Honda has been active in fuel cell research for more than three decades and continues to view hydrogen as a potential core business segment. The automaker confirmed it will keep pursuing opportunities to expand its hydrogen business while restructuring how fuel cell system manufacturing fits within its global strategy.
Michigan Fuel Cell Production Facility Began Operations in 2024
The Fuel Cell System Manufacturing joint venture began volume production in January 2024 at a 70,000-square-foot facility located inside GM’s Brownstown battery plant in Michigan. The site currently assembles battery packs for the Cadillac Celestiq and was adapted to support hydrogen fuel cell system production as part of the collaboration.
Despite the recent ramp-up, production will now wind down as both companies redirect capital and engineering resources toward other electrification priorities, reflecting changing market conditions and infrastructure readiness.
GM and Other Automakers Scale Back Hydrogen Programs
In October, GM announced it was discontinuing fuel cell development under its Hydrotec brand and ending hydrogen fuel cell production for data centers and power generation through the Fuel Cell System Manufacturing venture. GM stated that R&D and investment would instead focus on electric vehicles, battery technologies, and next-generation charging solutions.
Industry-wide retrenchment has continued. In July 2025, Stellantis confirmed it was ending its hydrogen fuel cell program for light commercial vehicles in Europe, citing limited hydrogen refueling infrastructure and high capital requirements.
Honda Refocuses Electrification Strategy Toward Hybrids
Alongside changes to its hydrogen strategy, Honda has adjusted its electrification investment plans. In May, Global Honda CEO Toshihiro Mibe announced that Honda would reduce planned EV investments by $20.7 billion through 2030, redirecting resources toward expanding its hybrid vehicle portfolio.
In October, Honda presented its next-generation hybrid-electric technologies during the “Honda Automotive Technology Workshop,” including:
These developments signal Honda’s near-term emphasis on hybrid electrification while maintaining longer-term hydrogen ambitions.
Honda’s Fuel Cell Legacy and Market Context
Honda became the world’s first automaker to offer a fuel cell vehicle for retail customers with the launch of the second-generation hydrogen-powered Clarity sedan in December 2016 in California. The fuel cell Clarity later received a Wards 10 Best Engines award for 2018, although production of all Clarity variants ended in August 2021.
While some automakers scale back hydrogen programs, others remain committed. Hyundai Motor continues fuel cell development as part of its long-term electrification strategy and recently unveiled a new version of its NEXO fuel cell crossover, with a global launch planned for early 2026.
As Honda Fuel Cell System Manufacturing winds down, the company’s transition highlights the evolving balance between hydrogen technology, hybrid electrification, and market-ready infrastructure within the global automotive industry.
The Michigan-based joint venture was formed in January 2017 as a 50:50 collaboration between Honda and GM, with both companies committing equal investments totaling $85 million. The initiative aimed to reduce fuel cell system costs by sharing suppliers and standardizing core components across both automakers’ hydrogen programs.
Honda Moves Fuel Cell Development In-House After Joint Venture Review
Although the fuel cell collaboration agreement between Honda and GM was first announced in July 2013, Honda stated that recent discussions led both parties to agree on ending production. While the partnership delivered “some positive results,” Honda determined that future hydrogen fuel cell systems would be developed independently as part of its long-term technology roadmap.
Honda has been active in fuel cell research for more than three decades and continues to view hydrogen as a potential core business segment. The automaker confirmed it will keep pursuing opportunities to expand its hydrogen business while restructuring how fuel cell system manufacturing fits within its global strategy.
Michigan Fuel Cell Production Facility Began Operations in 2024
The Fuel Cell System Manufacturing joint venture began volume production in January 2024 at a 70,000-square-foot facility located inside GM’s Brownstown battery plant in Michigan. The site currently assembles battery packs for the Cadillac Celestiq and was adapted to support hydrogen fuel cell system production as part of the collaboration.
Despite the recent ramp-up, production will now wind down as both companies redirect capital and engineering resources toward other electrification priorities, reflecting changing market conditions and infrastructure readiness.
GM and Other Automakers Scale Back Hydrogen Programs
In October, GM announced it was discontinuing fuel cell development under its Hydrotec brand and ending hydrogen fuel cell production for data centers and power generation through the Fuel Cell System Manufacturing venture. GM stated that R&D and investment would instead focus on electric vehicles, battery technologies, and next-generation charging solutions.
Industry-wide retrenchment has continued. In July 2025, Stellantis confirmed it was ending its hydrogen fuel cell program for light commercial vehicles in Europe, citing limited hydrogen refueling infrastructure and high capital requirements.
Honda Refocuses Electrification Strategy Toward Hybrids
Alongside changes to its hydrogen strategy, Honda has adjusted its electrification investment plans. In May, Global Honda CEO Toshihiro Mibe announced that Honda would reduce planned EV investments by $20.7 billion through 2030, redirecting resources toward expanding its hybrid vehicle portfolio.
In October, Honda presented its next-generation hybrid-electric technologies during the “Honda Automotive Technology Workshop,” including:
- A new midsize platform dedicated to hybrid vehicles
- A newly developed V-6 engine designed for full-size hybrid applications
These developments signal Honda’s near-term emphasis on hybrid electrification while maintaining longer-term hydrogen ambitions.
Honda’s Fuel Cell Legacy and Market Context
Honda became the world’s first automaker to offer a fuel cell vehicle for retail customers with the launch of the second-generation hydrogen-powered Clarity sedan in December 2016 in California. The fuel cell Clarity later received a Wards 10 Best Engines award for 2018, although production of all Clarity variants ended in August 2021.
While some automakers scale back hydrogen programs, others remain committed. Hyundai Motor continues fuel cell development as part of its long-term electrification strategy and recently unveiled a new version of its NEXO fuel cell crossover, with a global launch planned for early 2026.
As Honda Fuel Cell System Manufacturing winds down, the company’s transition highlights the evolving balance between hydrogen technology, hybrid electrification, and market-ready infrastructure within the global automotive industry.
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