Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Toyota’s hydrogen chief has issued a warning that vehicles powered by hydrogen fuel could face a similar fate to battery-powered electric cars if other countries do not ramp up their investment in the technology. Mitsumasa Yamagata, the president of Toyota’s hydrogen arm, highlighted China’s rapid dominance in infrastructure for hydrogen trucks, with the country leading in reducing fuel costs and building refuelling stations. China currently accounts for the majority of hydrogen commercial vehicle sales globally.
Hydrogen fuel cells, which generate electricity through a chemical reaction with oxygen and emit only water vapour, hold significant promise for long-haul transport due to the limitations of batteries in commercial vehicles. Despite the growing popularity of battery-powered vehicles, Asian carmakers like Toyota and Hyundai continue to bet on hydrogen as a viable fuel for the future.
However, the challenge lies in realizing cost-effective fuel production, establishing refuelling stations, and manufacturing affordable hydrogen cars. Major infrastructure projects face uncertainty as costs escalate, and subsidies prove insufficient. The US is at risk of cutting funds for hydrogen projects under President Donald Trump, while Japan and the EU face delays in implementing hydrogen initiatives.
Even in China, where hydrogen plays a significant role in commercial transport, the future is not guaranteed. Battery electric truck and bus sales have been on the rise, posing competition to hydrogen-powered vehicles. Yamagata emphasized that both battery and hydrogen cars are technologies in transition, with battery-powered vehicles straining grids and not suitable for heavy-duty long-distance transportation.
China’s dominance in hydrogen fuel-cell vehicles is evident, with sales surpassing all other regions combined. The country’s investment in hydrogen infrastructure has resulted in lower fuel costs compared to Japan. Toyota’s hydrogen chief stressed the need for urgent action to catch up with China’s advancements in the hydrogen sector.
Toyota, a pioneer in hydrogen vehicles, has sold thousands of Mirai fuel-cell cars since 2014 and continues to lead the industry in hydrogen technology. While the company has adjusted its hydrogen expectations in the face of rising battery EV sales, it remains focused on succeeding in the truck and bus markets. Toyota recently unveiled its third-generation hydrogen fuel cell, designed to last as long as a diesel engine and reduce costs for commercial vehicles.
The company plans to compete for market share in China through joint ventures with local companies, leveraging the market as a testing ground for its technology. Toyota aims to refine its products in China before expanding to other regions globally. The company’s commitment to hydrogen technology mirrors its success with hybrid vehicles, and it remains optimistic about the future of hydrogen fuel in the transportation sector.
