Fuel cell electric vehicles (FCEVs) continue to sell in the thousands, while battery electric vehicle (BEV) sales exceeded 10 million in 2024. A common argument claims battery electric powertrains operate more efficiently than both internal combustion engine (ICE) vehicles and FCEVs. Analysts show that three times the energy supplied to a BEV reaches the wheels compared to an FCEV. However, this comparison doesn’t tell the whole story. IDTechEx analyzes both the advantages and fuel cell vehicle challenges in its report, “Fuel Cell Electric Vehicles 2025–2045: Markets, Technologies, Forecasts.” The report forecasts market demand in each vehicle segment and evaluates demand for fuel cells and batteries.

Fast Charging Expansion Impacts Fuel Cell Vehicle Challenges

In March, BYD revealed its MW-level charger for passenger vehicles and announced plans to build 4,000 of them this year. These chargers allow vehicles to fully recharge in about five minutes, prompting more questions about whether FCEVs still offer a refueling advantage. Meanwhile, DC fast charging access continues to expand across key passenger vehicle markets. In contrast, hydrogen refueling station development has slowed outside China and South Korea.

Utilities Struggle with High-Power Charging Infrastructure

Fast DC chargers bring challenges, IDTechEx said. Charging station operators must handle the intense peak power demands. Most regions still lack the grid infrastructure to support such high energy levels, like the MW charging BYD plans. For context, National Grid estimates that a small town uses about 20MW—similar to what a busy car or truck stop with multiple chargers might demand. Utilities must invest hundreds of thousands of dollars and wait months or years to complete grid upgrades. Developers now explore stationary energy storage solutions to help manage these peaks.

Hydrogen Infrastructure Faces Different Scalability Hurdles

IDTechEx said hydrogen refueling stations reduce peak power demands by storing hydrogen onsite. When delivered by tube trailers, the hydrogen volume—and thus available energy—remains limited to the transported mass. Future development of hydrogen pipelines aims to supply a continuous, scalable network. Still, constructing hydrogen refueling stations requires years of effort and significant capital. Station developers must install systems for hydrogen generation, transport, compression, and storage—contributing to overall fuel cell vehicle challenges.

Low Hydrogen Availability Adds to Fuel Cell Vehicle Challenges

The limited supply of green hydrogen continues to hinder FCEV adoption, according to IDTechEx. Without access to affordable, low-carbon hydrogen at scale, FCEVs will struggle to grow. High operating costs and low vehicle numbers make current hydrogen stations unprofitable. In the future, industrial users—like oil refineries or steel producers—could help scale hydrogen supply, reducing costs and supporting FCEV viability.