The most promising vehicle engine that can overcome the problem of present internal combustion is the hydrogen fuel cell. Fuel cells are devices that change chemical energy directly into electrical energy without combustion. Pure fuel cell vehicles and fuel cell hybrid vehicles (i.e. a combination of fuel cell and battery) as energy sources are studied. Considerations of efficiency, fuel economy, and the characteristics of power output in hybridization of fuel cell vehicle are necessary. In the case of Federal Urban Driving Schedule (FUDS) cycle simulation, hybridization is more efficient than a pure fuel cell vehicle. The reason is that it is possible to capture regenerative braking energy and to operate the fuel cell system within a more efficient range by using battery. Life-cycle cost is largely affected by the fuel cell size, fuel cell cost, and hydrogen cost. When the cost of fuel cell is high, hybridization is profitable, but when the cost of fuel cell is less than 400US$/kW, a pure fuel cell vehicle is more profitable.