BMW and Toyota are collaborating to develop the third generation of fuel cell technology. During a recent visit to Japan, German Transport Minister Patrick Schnieder highlighted efforts to develop hydrogen as a key transportation fuel. 

Schneider arrived at Toyota’s fuel cell factory in a BMW iX5 Hydrogen and departed in a Toyota Crown FCEV, emphasizing the shared push toward fuel cell electric vehicles (FCEVs).

The BMW-Toyota hydrogen partnership

As BMW and Toyota jointly develop the third generation of hydrogen fuel cell technology, three BMW employees have relocated to Japan for the project. The partners aim to create a more compact and efficient class of vehicle. BMW will produce its model at a facility in Austria, while Toyota will manufacture its model in Japan. 

“The cooperation between Toyota and BMW on hydrogen is groundbreaking for the further development of this drive technology,” said Schnieder, as per reports. According to that same report, BMW plans to launch its first series-production hydrogen model in 2028, while Toyota will update its existing FCEV models with the new technology.

“We need to get hydrogen ready for series production so that we are not just dependent on batteries and fossil fuels and can build broader supply chains,” Schnieder continued, adding that Germany and Japan have collaborated on the issue since the launch of an energy partnership in 2019.

Rising hydrogen demand

Though electric vehicles have dominated when it comes to shifting away from traditional ICE vehicles, Germany anticipates a sharp rise in green hydrogen demand by 2030. Japan, meanwhile, is targeting 12 million tons of hydrogen capacity annually by 2040. The nation is also advancing ammonia as a hydrogen carrier for power generation.

Still, both nations face significant challenges in scaling green hydrogen—hydrogen produced using renewable electricity. Germany, for example, will need to import large volumes from abroad, as it won’t be able to meet the rising demand with its own production capabilities.

Infrastructure also remains limited globally, though strides are being made in that department. During Schneider’s visit to Japan, the Transport Minister visited the world’s first liquid hydrogen terminal in the port of Kobe, as well as pilot fuel cell projects at Kansai Airport in Osaka. A broader hydrogen supply chain agreement, signed last September, linked German and Japanese companies, including Kawasaki Heavy Industries, Toyota, Kepco, Daimler Truck, and Hamburg partners.

The world’s leaders in hydrogen

Though Japan is known as a world leader and pioneering nation in hydrogen technologies, Germany leads the pack when it comes to making hydrogen available for commercial vehicles. This year, Schnieder has allocated €220 million ($255 million) to build up to 40 hydrogen stations and deploy up to 400 hydrogen trucks.

Germany’s Daimler Truck operates the country’s first liquid hydrogen refueling station for trucks. The nation aims to have three-quarters of all new heavy commercial vehicles be emission-free by 2030, with hydrogen playing a notable role alongside battery-electric options. 

Daimler’s Japanese subsidiary Fuso, now part of the Archion joint venture with Toyota’s Hino, is also working to introduce liquid hydrogen systems. While hydrogen remains a niche option, the BMW-Toyota partnership and intensified government-industry ties signal a determined effort to diversify beyond battery-electric vehicles and reduce reliance on fossil fuels in the automotive sector.