Honda Motor Co. believes hydrogen will power the cars of the future, a stance at odds with the Obama administration's decision to drop automotive fuel-cell technology in favor of battery-run vehicles.
"Fuel-cell cars will become necessary," said Takashi Moriya, head of Tokyo-based Honda's group developing the technology. "We're positioning it as the ultimate zero-emission car."
Honda, the only carmaker leasing fuel-cell autos to individuals, opened a production line last year in Tochigi Prefecture to make 200 FCX Clarity sedans. The U.S. Energy Department sought to eliminate hydrogen-station funding and instead lend $1.6 billion to Nissan Motor Co. and $465 million to Tesla Motors Inc. to build electric cars, and give $2.4 billion in grants to lithium-ion battery makers.