Electric cars are becoming increasingly popular in the U.S., as brands continue to innovate and invest in motor and battery technologies. Within the coming months, we are very likely to notice a noteworthy dip in sales, but this is because of the discontinuation of the Clean Air tax rebate, which will worsen the affordability aspect of these already expensive products. Key players in the industry have started to roll out their fully electric product catalog transitions back, but they have all insisted that the ICE will eventually come to a complete end.
One fuel source that continues to make headlines routinely is hydrogen. Brands like Toyota, Hyundai, Honda, and BMW remain wholeheartedly committed to this alternative fuel source despite its incredibly high cost factor and limited infrastructure. Hydrogen seems like a really great option on paper, but when you look at its core fundamentals, it’s just a poor fuel source for you to consider when looking for an eco-friendly means of propulsion for your personal vehicle. Granted, hydrogen fuel cell electric vehicles benefit from a fair share of advantages, but it is an ultimately flawed technology.
To give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturers and other authoritative sources, including the Department of U.S. Energy and MotorTrend.
Hydrogen’s Inevitable Failure In The U.S.
The Odds Just Continue To Work Against It
Hydrogen-powered vehicles continue to face several noteworthy downsides for U.S. consumers, ultimately limiting its viability as an alternative fuel source, especially when compared to modern battery-electric vehicles. The most critical issue that hurts hydrogen FCEV ownership is the lack of refueling infrastructure, as there are only about 55 public hydrogen stations currently in operation in California, with some of these set to shut down in the coming months due to a noteworthy decline in demand. This also leaves the rest of the country completely inaccessible for practical hydrogen use, as the infrastructure gap stems from the high cost of building and maintaining hydrogen stations. This can typically exceed $2 million per site and requires specialized storage and distribution equipment that is far more complex than EV charging networks.
Hydrogen production also creates challenges, since most hydrogen today comes from steam methane reforming of natural gas. This is a process that emits significant carbon dioxide that undermines the environmental benefits unless the industry scales up green hydrogen made through renewable-powered electrolysis, which remains far more expensive. The cost of fuel cell vehicles is another barrier since models like the Toyota Mirai and Hyundai Nexo carry higher purchase prices than comparable EVs while also facing limited consumer incentives and weak resale values due to niche demand.
Potential Buyers Are Concerned About Future Support
Operating costs add to the problem since hydrogen fuel prices in California surpass $36 dollars per kilogram, meaning a full tank can cost over $120, which makes running a hydrogen car more expensive than both EVs and gasoline cars in most scenarios. Reliability concerns also arise since hydrogen stations frequently suffer from supply disruptions and maintenance shutdowns, leaving drivers stranded without backup fueling options.
As expected, public perception plays a role in the loss of hydrogen interest in the U.S. as well, as consumers remain skeptical of the technology, with concerns including:
- Safety concerns with high-pressure hydrogen storage
- Limited model choice
- Uncertainty about long-term support from automakers
How Hydrogen FCEVs Entered The U.S.
Early Models Showed A Lot Of Promise
Early hydrogen fuel cell electric vehicles in the U.S. showed a lot of promise, even though they were highly specialized and experimental offerings. FCEVs like the Honda FCX Clarity, Toyota Mirai, and Hyundai ix35 Fuel Cell acted as early test beds for hydrogen fuel cell technology, but the brands struggled with limited sales and mixed owner satisfaction due to infrastructure and cost challenges. All of this is to be expected, considering how left-field the technology was. Honda launched the FCX Clarity in 2008 as one of the first retail-available FCEVs, but it only reached about 200 leases in California because the brand restricted availability to customers living near the few hydrogen stations. Those who drove it often praised its smooth, quiet performance and zero-emissions novelty, but this was a very small community.
Hyundai followed in 2014 with the Tucson Fuel Cell, which is effectively the first mass-produced hydrogen crossover. This was available via a three-year lease with free hydrogen fuel, but sales remained under 1,000 units since customers faced fueling shortages and the vehicle’s driving range. This was able to cover around 265 miles per tank, which still wasn’t enough to overcome the lack of convenient refueling. The Toyota Mirai launched in 2015 and became the most viable hydrogen car in the U.S., with the brand signing several thousand leases in California.
The Mirai has a smooth and luxurious ride and should be called a Lexus rather than a Toyota. Once the infrastructure has been developed, I can see hydrogen cars making up about 10 to 15 percent of car sales and becoming an alternative to electric vehicles.
– 2021 Toyota Mirai Edmunds Owner Review
Boosting its popularity was a series of generous incentives and free fuel packages, as well as strong reliability and high comfort ratings. However, owners remained frustrated by the frequent downtime of fueling stations and long wait times when hydrogen supplies ran low.
Despite Decent Receptions, FCEV Models Never Caught On
Early FCEV users commonly state that these types of vehicles benefit from impressive characteristics, including a quiet ride, quick refueling times compared to conventional EVs. Hurting overall owner satisfaction is often attributed to the practical limitations of hydrogen, particularly with the inconvenience of planning trips around sparse stations and the anxiety caused by unpredictable outages. In sales terms, none of these models gained meaningful traction beyond California pilot programs, and the broader market remained uninterested, signaling that while hydrogen FCEVs demonstrated technical feasibility and decent owner experiences in ideal conditions, their commercial viability fell short of expectations.
Brands Are Truly Fighting A Losing Battle
Hydrogen will ultimately be phased out in preference to fully electric vehicles because EVs have established a far stronger foundation in terms of infrastructure, efficiency, cost, and automaker commitment. This makes them a much more practical and scalable solution for decarbonizing transport. Battery EVs can plug into a network of charging stations that now numbers in the tens of thousands across the U.S., while hydrogen refueling remains almost entirely confined to California, with no realistic path toward nationwide rollout due to the high expense of station construction and supply logistics.
Fully-Electric Vehicles Have Several Advantages
From an energy efficiency standpoint, EVs hold a major advantage since electricity can power a car directly, whereas hydrogen requires additional energy-intensive steps of production, compression, storage, and transport that waste more than half of the input energy, making FCEVs inherently less efficient and more costly to operate. Automakers have recognized this disparity and shifted investment away from hydrogen for passenger cars, with brands like Toyota and Hyundai scaling back U.S. hydrogen offerings while expanding EV lineups to meet consumer demand and regulatory targets.
Battery costs have also declined dramatically, enabling EVs to become increasingly affordable, while hydrogen fuel remains prohibitively expensive. Consumer adoption reflects these trends as EV sales continue to grow rapidly each year, even despite recent demand declines, while FCEVs remain stuck at a few thousand units in circulation. Public trust also leans toward EVs, with buyers perceiving them as easier to own, charge, and maintain compared to niche hydrogen models. Hydrogen’s role in the passenger car market will shrink to near irrelevance, leaving fully electric vehicles as the dominant zero-emission solution, as grid decarbonization progresses and battery technology improves further with longer ranges and faster charging.
Hydrogen Could Find Its Niche In The Future
There Remains Some Place For The Unique Fuel Source
Despite the dominance of battery electric vehicles, hydrogen fuel cell electric vehicles may still hold a niche future in the U.S. if automakers and energy companies focus on applications where hydrogen’s strengths outweigh its weaknesses, and several industry players continue to explore integration strategies that could keep the technology relevant. Hydrogen’s fast refueling times and long driving ranges give it an advantage for fleets, heavy-duty trucks, buses, and commercial vehicles that require minimal downtime and extended operation, and companies like Toyota, Hyundai, and Nikola are already targeting these markets with fuel cell trucks and transit solutions.
Automakers may also continue offering limited passenger FCEVs in California and potentially expand into regions where government or private investment builds hydrogen corridors, particularly along freight routes or in states promoting hydrogen hubs under federal clean energy funding. Energy firms and startups are investing in green hydrogen production through renewable-powered electrolysis, which could eventually reduce emissions and costs, making hydrogen more competitive and improving its sustainability credentials. There’s also a plan for automakers to integrate hydrogen technology into future product portfolios, not as a mass-market solution but as part of a diversified zero-emission strategy, using fuel cells alongside EVs to address different mobility needs, such as supplying backup power, enabling vehicle-to-grid services, or supporting industries where batteries are less effective.