Like most auto manufacturers, Japanese automaker Toyota is bolstering its lineup of electric vehicles (EVs) amid a global push to net zero, but that doesn’t mean that hydrogen-powered vehicles are on the back burner, according to the automaker’s CEO.
Per a Teslarati report, Toyota CEO Koji Sato reiterated an interest in using hydrogen as a viable energy source to power vehicles. However, the prime focus still remains on electric vehicles as the company looks to sell 3.5 million EVs by the year 2030.
Toyota was one of the prime automakers paving the way for hybrid vehicles with the introduction of the Prius model. Now, of course, that transition will be skewed towards fully electric as the industry evolves towards reducing carbon emissions.
The concept of hydrogen vehicles is not a new one, but it has yet to crack mainstream the same way that EVs have. Toyota does have one model in its lineup, the Mirai, that is hydrogen-powered, but it hasn’t quite sold as well as the company hoped — under 22,000 models after the release of two model generations.
Nonetheless, Toyota looks to forge on with hydrogen vehicles as an option to EVs.
“We want to ensure that hydrogen stays a viable option. We need a production and transport supply chain. Unless we see evolution there, we cannot expect a volume increase in the energy’s use,” Sato said.
Get Broad Exposure to Hydrogen With This ETF
For investors looking to get hydrogen sector exposure for growth opportunities, consider a broad option using the Direxion Hydrogen ETF (HJEN ). The fund seeks investment results that track the Indxx Hydrogen Economy Index, which offers exposure to 30 companies leading the way towards net-zero emissions by providing more accessible, efficient, and sustainable solutions across five hydrogen-related sub-themes.
Here are the five themes per the ETF’s product website:
- Hydrogen production and generation: the process of hydrogen generation, in either liquid or solid form.
- Hydrogen storage and supply: providing storage and transportation services of hydrogen. It also includes companies that supply hydrogen to various users and operate hydrogen fueling stations across countries.
- Fuel cell and battery: manufacturing fuel cells and batteries that are run on hydrogen-based technology.
- Hydrogen systems and solutions: offering equipment, components, or technology used in hydrogen industry. Those involved in providing solutions and systems to the value chain across hydrogen generation, storage, and supply.
- Membrane and catalyst: designing and producing membrane, filters, catalyst, or membrane assemblies for fuel cell or hydrogen-related technologies.
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