Stellantis Abandons Hydrogen Vehicle Plans, Citing Weak Infrastructure And Incentives: Report
Stellantis NV (NYSE:STLA) announced it would be pulling the plug on the development of its Hydrogen fuel cell technology, citing no potential in the sector in the mid-term future.
Check out the current price of STLA stock here.
What Happened: The Detroit-based automaker said it will no longer work on the tech as well as scrap plans to launch a range of Hydrogen-powered vehicles this year due to poor Hydrogen refuelling infrastructure and lack of purchase incentives, Reuters reported on Wednesday.
"The hydrogen market remains a niche segment, with no prospects of mid-term economic sustainability," said a source, cited by Reuters, who was familiar with the matter.
The automaker does not anticipate an uptick in adoption of Hydrogen cell-powered vans until the end of the decade, the report suggests.
Why It Matters: The news comes as Stellantis has been investing in alternative propulsion technologies, as the automaker had announced a breakthrough in solid-state battery technology, which the company intends to use in the Dodge Charger EV.
Stellantis is also exploring battery-swapping technology, with the company conducting battery-swapping trials in the Spanish capital, Madrid, with the Fiat 500e EV fleet.
Elsewhere, things could be improving for the Hydrogen sector as President Donald Trump's Big Beautiful Bill extends a two-year grace period for companies looking to invest in the Hydrogen sector via clean hydrogen production tax credits.
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