Honda has postponed the launch of its planned next-generation hydrogen fuel cell module production facility in Japan, citing changes in global hydrogen market conditions. The delay includes a reduction in initial production capacity and withdrawal from a government subsidy program tied to production benchmarks.
The automaker had originally intended to begin operations at the facility in Moka City, Tochigi, by the end of the fiscal year 2028, with an annual output target of 30,000 fuel cell modules. The factory was to be located on the site of Honda’s former Powertrain Unit Factory and would have formed a central part of the company’s broader hydrogen strategy.
However, Honda said it would “reduce initial production capacity and delay the timing to begin full production” in response to what it described as “recent changes in the global hydrogen market environment.” The company did not provide an updated timeline or new capacity figures.
As a result of the strategic revision, Honda will no longer qualify for financial support under the Japanese Ministry of Economy, Trade and Industry’s GX (Green Transformation) subsidy program, which mandates operational launch by the end of FY2028 with a minimum annual capacity of 20,000 units. Honda confirmed its exit from the program, stating its revised plan no longer meets those requirements.
Despite the setback, Honda reaffirmed its long-term commitment to hydrogen technologies. The company noted it has pursued hydrogen research and development for more than 30 years, viewing the technology as essential to achieving carbon neutrality by 2050. Honda’s current hydrogen initiatives target four main sectors: fuel cell electric vehicles (FCEVs), commercial vehicles, stationary power systems, and construction machinery.
The announcement reflects broader challenges facing fuel cell deployment, particularly in the passenger vehicle segment, where cost, infrastructure, and market adoption remain key hurdles. Honda’s CR-V e:FCEV, a plug-in hybrid SUV using hydrogen fuel cell drive, remains one of its current offerings in this space.