Toyota and BMW are joining forces to push through the hydrogen fuel cell headwinds

Toyota and BMW are updating their partnership in hydrogen fuel cell vehicles, signing a new memorandum of understanding to accelerate the development of next-generation, zero-emission vehicles. BMW will launch its first hydrogen-powered model in 2028.

Hydrogen is the most abundant element in the universe, but automakers have struggled to market fuel cell vehicles to the public. A severe lack of fueling infrastructure outside of California in the US has prevented hydrogen from becoming as popular or prevalent as battery-electric cars. And vehicle sales have essentially collapsed: only 322 fuel cell vehicles were sold in the US in the first half of 2024, 82 percent lower than a year ago. 

Toyota and BMW think they can overcome these challenges together. The upgraded partnership aims to standardize components and bring down the cost of fuel cell vehicles by developing their own shared powertrain. They will also work together to build hydrogen fueling stations to address the core stumbling block to fuel cell vehicle adoption. The companies originally joined forces in 2012 on hydrogen vehicles.

BMW says its series production model will be an existing model in its lineup that’s offered as a hydrogen-powered variant. The two companies will also work together on fuel cell-powered commercial vehicles but didn’t specify what type. They also called for the creation of a “conducive framework” between government and industry to ensure hydrogen technology has legs to stand on.

Hydrogen fuel cells use compressed hydrogen as their fuel, releasing water vapor as its only emission. Several automakers have recently seized on the technology for its advantages in the development of heavy-duty vehicles and mobile power generators — and as a way to further transition away from polluting gas-powered vehicles and meet their own climate goals.

Toyota, in particular, is one of the few companies that is still selling passenger vehicles powered by fuel cells. The Toyota Mirai is only available in California and comes with a complimentary fueling voucher worth up to $15,000. As of June this year, the Japanese carmaker had sold about 26,000 Mirais since its launch, according to the company. BMW also has its own fuel cell-powered vehicle, the iX5, but the company is only testing the waters by making a handful so far.

Still, BMW and Toyota face an uphill battle. The fueling infrastructure in California seems on the brink of collapse, with dozens of stations offline at any given time. Earlier this year, Shell closed its stations in the state amid fuel shortages. And the price of hydrogen continues to climb, as production problems and supply shortages roil the market. 

BMW and Toyota are holding a roundtable Thursday to answer questions about their upgraded tie-up, as well as the challenges they will face ahead.