In an attempt to “sharpen its focus on technologies that show the clearest path to scale and customer value,” GM and its partner Honda have ended production and reportedly scrapped plans to construct a $55m plant in Detroit.

Instead of advancing the development of its Hydrotec brand, GM will concentrate R&D and capital resources on batteries, charging technologies, and electric vehicles (EVs).

“[These] have clear market traction, rather than on hydrogen, which has yet to fulfil its potential,” the firm said in a statement.

However, through the joint venture (JV) Fuel Cell System Manufacturing LLC, GM will continue to produce hydrogen fuel cells for data centres and power generation at its Michigan plant.

FCSM’s 70,000 sq ft facility in Brownstown was established in 2017 through an $86m joint investment, producing hydrogen power solutions for both companies.

Although large-scale hydrogen fuel cell manufacturing began in Michigan last year, recent reporting suggests that GM has laid off employees, while construction of its planned Hydrotec facility in Detroit has also been halted.

GM attributed the decision to broader market challenges and noted that “hydrogen holds promise for specific high-demand industrial applications like backup power, mining, and heavy trucking.”

But it added, “The path to reaching a sustainable business in fuel cells is long and uncertain. High costs and limited hydrogen infrastructure in the US have limited consumer adoption of fuel cell-powered vehicles.

“According to the US Department of Energy (DOE), only 61 hydrogen refuelling stations exist nationwide, compared to more than 250,000 level two or faster electric vehicle charging locations.”

GM has invested heavily in hydrogen fuel cell development, allocating $35 million in 2021 to expand production across multiple plants and projects.

Its decision to scale back production comes amid growing uncertainty in the US hydrogen industry.

Reports emerged last week that the DOE is planning to cancel grants for all five of the remaining federally backed hydrogen hubs.

While GM is pulling back from hydrogen fuel cell R&D and pausing Hydrotec development, partner Honda is pushing forward independently with its own fuel cell development.

Last February, Honda said it costs half as much to produce and is more than twice as durable as the current model.