China’s hydrogen strategy: From commercial trucks to clean energy dominance

China is charging ahead in the global hydrogen race and has no intention of slowing down. With government backing, innovative strategies, and a shift toward commercial trucks, China is poised to continue its hydrogen revolution.

The Pulse reveals in a new article that China is firmly positioned as a leader in the hydrogen energy race and is determined to maintain its dominance. In 2022, the country set an ambitious target to have 50,000 hydrogen-powered vehicles on the road by the end of 2025. Although hydrogen vehicle sales have been slower than anticipated, China remains the global leader in commercial hydrogen vehicle sales as of 2024 and is expected to retain this position in the coming years.

Despite facing a recent dip in both production and sales, China's goal of having 50,000 hydrogen-powered vehicles remains unchanged. In fact, the country continues to lead the market, having sold more hydrogen-powered commercial vehicles in the first three quarters of 2024 than the rest of the world combined.

China’s hydrogen ambitions are strongly supported by the government, which has implemented aggressive policies and legislation to accelerate commercialization. The country’s Medium- and Long-Term Plan for Hydrogen Industry Development (2021-2035) identifies 2025 as a key milestone for the large-scale adoption of hydrogen-powered vehicles. Additionally, China’s new Energy Law, which took effect in early 2025, officially recognizes hydrogen as a major energy source, eliminating legal barriers to further development.

The country’s hydrogen strategy focuses on producing green hydrogen from renewable sources, with an annual production target of 100,000 to 200,000 tons. This strategy also aims to expand the use of clean hydrogen across sectors such as energy storage, electricity generation, and industry.

A significant shift is underway in China’s hydrogen fuel cell sector, with a growing emphasis on commercial trucks. In 2020, buses accounted for the majority of hydrogen vehicle sales, representing 90 per cent of the market. However, by 2024, trucks now make up 87 per cent of hydrogen vehicle sales, with heavy trucks accounting for two-thirds of the total and light trucks representing the remaining third.

This shift signals China’s growing focus on heavy-duty vehicles as it expands its hydrogen offerings. At the same time, luxury automaker Ferrari is also exploring the development of a hydrogen-powered model, which, if introduced in the US, could pose serious competition to industry leader Tesla.

Despite its dominance, China’s hydrogen vehicle market faced a significant setback in 2024. Both production and sales figures dropped, with production falling by 10.4 per cent and sales declining by 12.6 per cent. These declines represent a major challenge to meeting the country’s hydrogen vehicle target, and as of now, there are only half of the 50,000 hydrogen-powered vehicles needed on the road.

While it seems unlikely that China will hit its 2025 target exactly as outlined in the Medium- and Long-Term Plan, the country may still come close to meeting it.

Several strategies are in place to revive the hydrogen market and put China back on track toward achieving its goals. These include reducing production costs, expanding refueling infrastructure, optimizing policy frameworks, and broadening the market applications of hydrogen.

Experts predict a resurgence in hydrogen energy development in China, driven by the government’s strong support and the rapid decline in renewable energy costs. The government is offering attractive incentives, and the necessary infrastructure for hydrogen production and storage continues to grow. Hydrogen is increasingly being used in conjunction with solar and wind energy, a strategy that is expected to gain even more traction moving forward.

According to the Hydrogen Energy Industry Promotion Association (HEIPA), which operates under the China Association for the Promotion of Industrial Development, the number of hydrogen fuel cell vehicles on the road in China is expected to reach approximately 45,000 by the end of 2025. Additionally, the market for vehicle-mounted hydrogen storage cylinders is projected to exceed 38 billion yuan ($5.23 billion) between 2025 and 2030.

China is positioning itself to become a global leader in hydrogen energy development in the coming years. Despite the recent dip in the vehicle market, the country is poised to retain its leadership in hydrogen production and related technologies, particularly with the development of new hydrogen production methods that eliminate CO₂ emissions entirely.

By Naila Huseynova