Hydrogen | BMW and Toyota to Extend Fuel-Cell Alliance

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Hydrogen | BMW and Toyota to Extend Fuel-Cell Alliance

Date：2024-09-02

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Keyword tags： Hydrogen Fuel Cell FCEV

According to recent reports by Nikkei, Toyota Motor Corporation and BMW are set to enhance their partnership in the domain of fuel cell electric vehicles (FCEVs). As the demand for electric vehicles experiences a slowdown, these automotive giants are placing their bets on the market potential of hydrogen fuel cell vehicles.

Since establishing their collaborative relationship in the field of fuel cell vehicles in June 2012, Toyota has been supplying a limited number of components to BMW, who has been developing the fuel cell stack and the entire fuel cell system in-house. Following the upgrade in their partnership, Toyota is expected to provide BMW with more key components for hydrogen vehicles, including hydrogen tanks, fuel cell stacks, and fuel cell systems. Subsequently, BMW will utilize its in-house electric vehicle technologies, such as the drive system, to manufacture the whole vehicles. Additionally, the two companies will collaborate on hydrogen supply infrastructure in Europe.

Fuel cell vehicles operate using the chemical reaction between hydrogen and oxygen to produce electricity. As these vehicles emit only water and no carbon dioxide, they are often referred to as the "ultimate eco-friendly cars."

BMW has developed a fuel cell concept vehicle, the iX5 Hydrogen, based on its X5 SUV. This model is equipped with two hydrogen tanks, offering a range of over 500 kilometers and the capability to be rapidly refueled with hydrogen in just 3 to 4 minutes. BMW aims to begin mass production of the iX5 Hydrogen in the coming years, with plans to have multiple hydrogen vehicle models by 2030. The X6 and X7 models may potentially be launched with fuel cell options starting from 2027, and even the Neue Klasse platform, focused on electric drive, may also offer fuel cell variants alongside its all-electric models.

Through this strengthened partnership with Toyota, BMW will integrate Toyota's fuel cell systems to reduce development and production costs. The two companies will primarily share key components, which constitute a significant portion of the costs, to lower the prices of fuel cell vehicles.

Toyota, which launched its hydrogen vehicle Mirai in 2014, has been at the forefront of mass-producing fuel cell vehicles. However, due to the high price of the Mirai in Japan, exceeding 7 million yen ($48,000), the expensive cost of hydrogen fuel — which has risen to $30 per kilogram in California, USA — and insufficient hydrogen infrastructure, the adoption of fuel cell vehicles among global consumers has been slow. Statistics indicate that Toyota has only sold 22,000 Mirai units worldwide since 2014.

Nevertheless, the global slowdown in the growth of electric vehicles seems to present an opportunity for the development of fuel cell electric vehicles. In July of this year, Honda Motor Corporation launched its new fuel cell vehicle in Japan and the United States, reversing the company's decision to exit fuel cell vehicle production in 2021.

BMW and Toyota will also collaborate on hydrogen supply infrastructure in Europe. According to data from the European Automobile Manufacturers' Association, by the end of 2023, there were only 270 hydrogen refueling stations across Europe, significantly fewer than the number of public charging stations for electric vehicles in the EU (632,000).

Media reports suggest that Toyota and BMW will sign a memorandum of understanding this week and officially announce their collaboration at BMW's press conference on September 5th.

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