Why Stellantis' plans for hydrogen vehicles failed? What's next for Symbio?

On 16 July 2025, Stellantis – Europe's second largest car conglomerate – announced the full abandonment of its hydrogen vehicle project, and of its key fuel cell manufacturer, Symbio.

The shock to Symbio could lead to the company's collapse. The damage is already done to Stellantis' erstwhile partners Michelin and Forvia, who stand behind their venture – for now.

The outcome for all is unclear, but what is apparent is that Stellantis' gamble on hydrogen cars has failed. After following the hype, and failing to recognise the economic fundamentals, reality has finally caught up with the carmaker.

Stellantis' Gamble

In November 2019, Symbio, a specialist developer of hydrogen fuel cell technology, became the focus of an automotive partnership between Forvia, an automotive parts manufacturer, and Michelin, the tyre producer. The 50-50 venture intended to bring industrial-scale fuel cell manufacturing to the European automotive market.

When Stellantis entered the joint venture in July 2023, the hype around hydrogen had reached its peak. Major national hydrogen strategies, envisioning infrastructure development and widespread offtake support, had been announced. Pipelines for hydrogen production were accelerated. Companies, buoyed by investor sentiment and government assurances, rushed to form hydrogen alliances and consortiums.

In this context, Stellantis' investment – €150 million (£130m $173m) for a 33% stake in Symbio – rode a wave of broad optimism. That optimism was especially prevalent in Europe, where the automotive industry was scrambling to find an angle to compete with Chinese and American carmakers.

In its Dare Forward 2030 strategy, Stellantis aimed high, targeting a yearly production of over 10,000 hydrogen-powered commercial vehicles by 2025. To achieve this, the carmaker committed to facilitating Symbio's R&D and to being the venture's core commercial off taker.

Stellantis and its partners began scaling capacity to meet these targets. However, it quickly became apparent that this strategy would face significant economic headwinds.

Fighting the Fundamentals

When considering how to cost-effectively decarbonise, there is a simple foundational rule: if it can be directly electrified, it should be.

Renewable electricity is the cheapest source of energy in many parts of the world - including Europe. Consequently, clean hydrogen, which is generated using electricity, cannot undercut direct electrification. Instead, to be competitive, it must be used to decarbonise the 'hard-to-abate' sectors which electrification cannot.

First among these are the petrochemical and chemical industries, for which gas-derived hydrogen is already used as a feedstock, and where substituting green hydrogen would decarbonise production without impacting output. Similarly, when utilised in specialist blast furnaces, hydrogen can replace coking coal in steel manufacturing, reducing emissions and potentially outperforming electric arc furnaces.

Yet, when adopted as a direct energy source – an application that puts H2 in competition with electrification - the economic case for hydrogen collapses.

Road vehicles are a prime example. When charging an EV from a solar array, energy is absorbed, converted, then travels or is stored before it charges the vehicle. On average, a quarter of the energy absorbed by the panel is lost throughout this process.

Contrastingly, fuelling a hydrogen car from the same solar source – including electrolysis, compression, storage, distribution, and the conversion of hydrogen back into usable electricity – amounts to an overall energy loss of approximately 75%.

Hydrogen vehicles, where available, are also more expensive than electric alternatives, reflecting smaller industrial economies of scale and the high cost of nascent fuel cell technologies. The Toyota Mirai, a mid-sized H2 car, retails for over £64,000. The BYD Seal, a comparable EV, costs £45,700.

By late 2024, energy inefficiencies and technology costs had choked hydrogen vehicle demand. Meanwhile, EV technology scaled at pace.

Pulling the Plug

By the end of 2024, the hydrogen automotive market was collapsing.

Hyvia, a joint venture launched between Renault and Plug Power, was officially liquidated in February 2025, citing high hydrogen costs, low demand, and a lack of supportive infrastructure, including refuelling stations. Nikola, a US hydrogen truck manufacturer, filed for bankruptcy the same month.

These failures shook the market, calling into question Stellantis' commitment to hydrogen in Europe. Yet, despite these failures, the automaker remained publicly committed. The company had planned to meet its 10,000-unit target through facilities in France and Poland, with production at the sites scheduled to begin in summer [2025].

However, by May 2025, Stellantis had privately informed its partners that it would be halting all hydrogen activities as of 2026, including its investment in Symbio. Production would be discontinued altogether.

In its public announcement two months later [July 2025], the firm cited the underdevelopment of refuelling infrastructure, high capital requirements, and weak consumer purchasing incentives across Europe to justify its shift away from hydrogen vehicles. Jean-Philippe Imparato, Stellantis' chief operating officer for the European region, further explained that carmaker "does not anticipate the adoption of hydrogen-powered light commercial vehicles before the end of the decade".

With that, Stellantis, Europe's foremost prospective off taker, abandoned its commitment to hydrogen technology - and to Symbio.

What's Next for Symbio?

Following Stellantis' announcement, Forvia and Michelin put the blame squarely on the company, stating that "Stellantis' decision will have irreversible operational and financial consequences for Symbio", while clarifying that "Stellantis' orders alone account for approximately 80% of Symbio's planned production volume".

Since, Forvia has posted a €136 million write down on its share of Symbio. For its part, Michelin has set aside €140 million to support Symbio through the transition period. Despite this, both partners have confirmed that they stand behind the company.

For its part, Symbio called on Stellantis to "honour its commitments, uphold its contractual responsibilities, and contribute to securing the company's future – including through compensation".

The firm's CEO, Jean-Baptiste Lucas, emphasised that "no company had ever deployed such technologies at this scale", and that "it is inconceivable that all of this could be wiped out".

Toyota, Hyundai, and BMW remain the only carmakers committed to hydrogen vehicles. Of these, only BMW is based in Europe, and will launch its mass-market hydrogen car by 2028 at the earliest.

Having scaled to meet Stellantis' orders, Symbio has the capacity and expertise to support these automakers. Following write downs on its value, the firm may even be an undervalued asset for Toyota, Hyundai, or BMW.

Yet Symbio, its partners, and any off-taking carmakers will continue to face the same challenge as Stellantis: the fundamentals are not in their favour.

Use Case for Fuel Cells 

Hydrogen fuel cells will find a niche. They are uniquely suited for providing short-term backup power, a key requirement for digital infrastructure like data centres. They can be used in light aircraft, ferries, and even buses where batteries are potentially too heavy or unwieldy. More generally, hydrogen is increasingly earmarked as an input for both aviation and shipping e-fuels.

If applied to these niches, Symbio's products may be met with healthy demand. If so, while Stellantis' dramatic move may well mark the last chance for hydrogen cars – at least in Europe – it is unlikely to be the last we see of fuel cells. It may not be the last we hear of Symbio, either.

Whatever the particular outcome, the Symbio-Stellantis debacle serves as a valuable case study for industries looking to decarbonise. Pivotally, hype can mask many underlying issues and cannot be the deciding factor in gambling on a given technology. Stellantis, by misunderstanding the fundamentals and buying into market enthusiasm, fell into this trap. Symbio, it seems, is footing the bill.