General Motors announced that it will stop work on next-generation hydrogen fuel cell development through its HYDROTEC brand. Production of hydrogen fuel cells for data center and power generation through Fuel Cell System Manufacturing LLC, a GM joint venture with Honda, will continue.

While hydrogen holds promise for specific high-demand industrial applications like backup power, mining, and heavy trucking, the path to reaching a sustainable business in fuel cells is long and uncertain. High costs and limited hydrogen infrastructure in the U.S. has limited consumer adoption of fuel cell-powered vehicles. According to the U.S. Department of Energy, only 61 hydrogen refueling stations exist nationwide, compared to more than 250,000 level 2 or faster electric vehicle charging locations.

GM is sharpening its focus on the technologies that show the clearest path to scale and customer value.

GM will concentrate R&D and capital resources on batteries, charging technology, and EVs – which have clear market traction, rather than on hydrogen, which has yet to fulfill its potential.