(Yicai Global) March 2 -- Hyundai Motor Group has begun building its first fuel cell system plant outside South Korea in southern China.

The South Korean car giant expects to finish the project in the second half of 2022, Tencent News reported from the groundbreaking ceremony of the plant in Guangzhou today. The total investment is predicted to reach CNY8.5 billion (USD1.3 billion) by 2030.

The Seoul-based company penned a memorandum of understanding with Guangdong province's government in December 2019 regarding the project.

The factory, named HTWO Guangzhou based on the firm's hydrogen brand HTWO, will have a research and development center and house fuel cell system and stack production. The plant site covers an area of 207,000 square meters.

The project will help Hyundai to optimize its global positioning and take the lead in China's emerging hydrogen energy market by introducing passenger and commercial vehicles, according to the report. The company is looking to partner with Chinese firms to use hydrogen systems in ships, trains, and electric generators.

Editor: Emmi Laine, Xiao Yi