Toyota Motor Corporation (TM) and BMW AG (BMWYY) are set to further strengthen their collaboration in the realm of fuel cell vehicles (FCVs), a move aimed at enhancing the competitiveness of hydrogen-powered cars. According to Nikkei Asia, this expanded partnership, scheduled for official announcement on September 5, 2024, will see Toyota supply crucial components such as hydrogen tanks and fuel cell systems to BMW. BMW will then utilize these components to manufacture and distribute mass-produced FCVs over the coming years.
Toyota and BMW initially joined forces in FCV development back in 2012, motivated by the need for greener vehicles in response to stricter environmental regulations. Hydrogen fuel cell vehicles boast an emission profile consisting solely of water, eliminating the range anxiety associated with battery electric vehicles (BEVs). Moreover, they offer refueling times comparable to traditional internal combustion engine vehicles. However, the production cost of FCVs remains high, leading to limited profitability and requiring hydrogen storage at extremely low temperatures. This expanded partnership aims to address these challenges by standardizing components and driving down the cost of FCVs, which have faced difficulty gaining mainstream popularity due to affordability concerns.
Toyota, a pioneer in FCV technology, unveiled the world’s first mass-produced FCV, the Mirai, in 2014. Despite this pioneering effort, the high price tag exceeding 7 million yen (compared to the average car price of 2.64 million yen in Japan in 2023) resulted in limited sales. Since its launch, TM has sold only about 26,000 Mirai units, a small fraction of the company’s annual sales exceeding 10 million vehicles. Meanwhile, BMW has developed a concept FCV, the iX5 Hydrogen, featuring two hydrogen tanks and boasting a range of over 310 miles, refuelable in just 3-4 minutes. The integration of Toyota’s fuel cell system could significantly accelerate the production timeline of the iX5 Hydrogen.
Despite the potential of FCVs, they haven’t achieved widespread adoption, primarily due to the limited availability of hydrogen refueling stations. This expanded alliance is expected to focus on developing hydrogen infrastructure in Europe. According to the European Automobile Manufacturers’ Association, there are currently only 270 hydrogen filling stations in Europe, a stark contrast to the 632,000 public BEV charging stations present in the European Union as of the end of 2023. This collaboration aims to address the infrastructure gap and pave the way for wider FCV adoption.
This partnership represents a significant step forward in the advancement of hydrogen fuel cell technology. By combining Toyota’s expertise in fuel cell systems with BMW’s manufacturing capabilities and European market presence, the collaboration has the potential to accelerate the development and deployment of FCVs, contributing to a cleaner and more sustainable future of mobility.
