NAGOYA — Toyota Motor announced Friday that it will establish a joint venture with major Chinese companies to develop fuel cells, which are expected to be used in fuel cell vehicles developed by the Japanese automaker. Toyota is expending significant effort in developing fuel cell vehicles, and the Chinese government is increasingly interested in these next-generation, environment-friendly autos.
The new partnership will strengthen development and improve ties with Chinese companies on the ground.
Toyota will lead the joint development project, which is expected to include the Tsinghua University-affiliated Beijing SinoHytec, Beijing Automotive Group, China First Automobile Corp., Dongfeng Motor Co. and GAC Group. Dongfeng is close to Honda Motor and Nissan Motor, so it is rare for it to team up with Toyota.
China First Automobile and GAC are already jointly operating a plant for finished vehicles, and in 2019 they teamed up on fuel cell vehicle development. Toyota has an existing partnership with Beijing Automotive.
Beijing SinoHytec possesses expertise in fuel cell vehicle control systems.
Toyota Chief Operating Officer Shigeki Terashi said in the statement, “It is important to find partners to promote the electrification of cars, and by working with companies that have considerable influence in China’s commercial vehicle market as well as SinoHytec, which has reliable technological capabilities, we will be able to establish the foundations for the widespread use of FCEVs in China.”
Fuel cell vehicles generate electricity when their hydrogen reacts with oxygen in the air. They are considered the “ultimate eco-car,” because the only thing they discharge while operating is water. Toyota took the lead in the field when it released the world’s first mass-produced fuel cell vehicle, the Mirai, in 2020. However, due to issues including insufficient infrastructure, they have not seen widespread adoption.
By increasing its connections in China, where the government is showing keen interest in environment-friendly vehicles, Toyota aims to not only improve the performance of its fuel cells, but also accelerate the development of the necessary infrastructure.
Fuel cell vehicle partnerships are popping up one after another, both in Japan and elsewhere. Honda announced in January that it would jointly develop a fuel cell truck with Isuzu Motors. Germany’s Daimler and Sweden’s Volvo announced in April that they will establish a joint venture to develop and mass-produce a fuel cell truck.