The news that China's top fuel cell company is entering the Korean hydrogen bus market signals a major shift for the domestic industry.
China's REFIRE has agreed to supply its 120 kW-class fuel cell stack for a next-generation 11-meter Korean hydrogen bus. This follows a similar trend seen in the electric vehicle market, where Chinese CATL batteries were adopted for the Kia EV5. Now, Chinese core components are making their way into the powertrain, often called the 'heart' of hydrogen vehicles.
Several factors have combined to create this shift. First, the South Korean government's strong hydrogen vehicle promotion policy opened the door. The government set an ambitious target to supply 7,820 hydrogen vehicles, including 1,800 buses, by 2026. It actively stimulated demand by offering purchase loans of up to 200 million won per bus. The expansion of infrastructure, such as the large-scale hydrogen charging station at Incheon Airport, also eased the purchasing burden for bus companies.
Second, Chinese companies have emerged with formidable price competitiveness. China has supported mass production of hydrogen vehicles through a government-led 'demonstration city cluster' policy. Through this process, companies like REFIRE gained technology and experience, allowing them to significantly lower the production cost of fuel cell stacks. They were ready to supply affordable, proven components just as the Korean market opened up.
This development was somewhat predictable. A precedent was set in 2025 when Kia adopted Chinese CATL batteries for its EV5 electric vehicle. This event created the perception that 'major Chinese components can be used in domestic cars,' lowering the psychological barrier for this fuel cell stack adoption. Ultimately, the convergence of Korea's 'policy-driven demand' and China's 'low-cost mass production' has initiated a seismic shift in the domestic hydrogen vehicle supply chain.
Looking ahead, the domestic market is likely to become a fierce battleground for performance, price, and reliable after-sales service. Domestic component makers now face the challenge of securing price competitiveness while maintaining their technological edge. Meanwhile, bus operators will have more options to consider, carefully evaluating the TCO (Total Cost of Ownership).
- Fuel Cell Stack: The core component of a hydrogen vehicle that generates electricity by reacting hydrogen with oxygen.
- Powertrain: The group of components that generate power and deliver it to the road surface, including the engine, transmission, and drive shafts.
- TCO (Total Cost of Ownership): The comprehensive cost of an asset, including not only the initial purchase price but also maintenance, operation, and other related expenses over its lifetime.