Hanon Systems Production of Eco-Friendly R744 Electric Compressors Surpasses 1 Million Units

SEOUL, South Korea, Sept. 16, 2025 /PRNewswire/ -- Hanon Systems, a leading global automotive thermal management supplier and a subsidiary of Hankook & Company Group, today announced it has surpassed 1 million units in cumulative production of electric compressors (eCompressors) using eco-friendly refrigerant R744 (CO₂). This milestone, achieved just one and a half years after reaching 500,000 units in January 2024, demonstrates Hanon Systems' competitiveness and growth in the electric compressor market.

Production of the R744 eCompressors takes place at Hanon Systems' plant in Palmela, Portugal, which supplies components for Volkswagen Group's MEB platform, exclusively used for electric vehicles. Demand for R744 compressors has increased significantly alongside the growth of the European electric vehicle market. At major industry events such as the IAA Mobility earlier this month, several leading automakers unveiled new electric vehicle models, further reinforcing expectations for the market's future growth.

R744 is a natural refrigerant with a global warming potential (GWP) of just 1, making it a leading eco-friendly alternative to traditional refrigerants. In electric vehicle heat pump systems, the electric compressor is a core component, powering the refrigerant cycle to optimize cabin comfort and vehicle performance. The R744 electric compressor minimizes the environmental impact of electric vehicles while also mitigating the decline in driving range during cold weather conditions. In addition, R744 supports global electric vehicle adoption efforts by complying with tightening environmental regulations.

Hanon Systems has decades of experience developing thermal management solutions that operate with various refrigerants. The company was the first in the industry to design and develop an eCompressor that utilizes R744 for automotive climate control systems. Beyond R744 solutions, Hanon Systems also offers next-generation eco-friendly refrigerant solutions such as R290 (propane), as well as traditional refrigerants, including R134a and R1234yf. This comprehensive portfolio enables the company to respond effectively to diverse global demands.

"Hanon Systems continues to drive innovation in automotive thermal management solutions," said Soo-il Lee, Vice Chairman and CEO of Hanon Systems. "Surpassing 1 million units in R744 electric compressor production is a testament to our leadership in eco-friendly technology and marks a significant milestone in our commitment to a sustainable future. As part of the Hankook & Company Group, we benefit from collective innovation that makes achievements like this possible."

The Palmela plant began producing mechanical compressors in 1988 and introduced its first electric compressor in 2009. Located in Setúbal, about 25 kilometers south of Lisbon, the Palmela plant benefits from its strategic proximity to the country's capital and broader European value chain, enhancing its logistics efficiency.

About Hanon Systems

Hanon Systems, founded in 1986, is a global leader in thermal management solutions. In January 2025, it became a subsidiary of Hankook & Company Group. Its offering includes a wide range of solutions in the areas of heating, ventilation and air conditioning, powertrain cooling, compressor, fluid transport, and electronics and fluid pressure. The company currently operates 50 manufacturing sites and three regional innovation centers and employs more than 20,000 people across 21 countries. To learn more, visit hanonsystems.com.

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