Hyundai is developing a new fuel cell for the Tucson SUV that will increase the driving the current model’s 248 miles range by 30 percent to 348 miles on a full tank of hydrogen.

In the latest play in the game of one-upmanship in the nascent fuel cell market,
Hyundais increased traveling distance exceeds the Toyota Mirai;s 312 miles, but doesn’t match the Honda Clarity Fuel Cell’s 366 miles.

California is the only state where the fuel cell Tucson is available, and with its limitd number of hydrogen fueling stations — 16 stations in Southern Californ, five in the Bay Area — “range anxiety” isn’t just about battery electric vehicles.

When it arrives in early 2018, the Tucson SUV Fuel Cell will have a lower sticker price of around $50,000 compared to the Clarity at $60,000 and the Mirai at $57,500.

Currently, the fuel cell Tucson is available to California consumers as a lease-only program with no lease-purchase at the end of term.

SEE ALSO: Fuel Cell Land Speed Record Set By Hyundai Tucson

The lease requires an upfront $3,000 payment and $500 a month for 36 months. As part of the lease, hydrogen fuel and maintenance are included, along with a permit to drive in High Occupancy Vehicle (HOV) lanes on the highway.

It is not known if Hyundai plans to continue with its lease-only strategy.

Additionally, Motor Trend reported that Hyundai is set to introduce a fuel cell-powered commercial bus in 2017, around the same Toyota brings out its 77-seat fuel cell bus.