When China’s father of EVs starts talking up hydrogen vehicles, analysts say investors should pay attention
- EV celebrity Wan Gang says a ‘hydrogen society’ is ahead
- Companies are jumping in, but cost and other challenges remain
The “father of China’s electric vehicle movement” and a bigwig in political circles is gushing of late about the promise of another renewable – hydrogen-powered vehicles. As players get on board, analysts say it is a good time for investors to start thinking about this emerging sector.
The science behind the technology is easy to grasp: hydrogen gas stored in a vehicle is converted by fuel cells into electricity. The vehicle is powered with essentially no emissions, and it can travel far longer distances than electric vehicles can without needing to refuel, underscoring why the sector is getting so much buzz.
But cost – for the vehicles, the fuel and the network of refuelling stations – is among challenges to making what EV trumpeter Elon Musk once dismissed as “fool cells” commercially viable on a large scale.
“In China, there are a lot of companies putting resources in to focus on this industry,” said Toliver Ma, auto analyst at securities company Guotai Junan Securities in Hong Kong. “There are still technological obstacles to overcome to scale the usage. It will be a while.”
There are plenty of examples of early success, however.