Japan’s Toyota Motor Corp is doubling down on its commitment to the development of hydrogen fuel cell vehicles. The automakers announced a new venture on Friday with Chinese automakers FAW Group, Dongfeng Motor, Beijing Automotive, GAC and hydrogen fuel cell developer Beijing SinoHytec.
The joint venture is named United Fuel Cell System R&D (Beijing) Co., Ltd. (FCRD). FCRD’s primary business will be the development of fuel cell systems for commercial vehicles in China.
Each company, including Toyota Motor Corporation and Beijing SinoHytec Co., Ltd. will invest in the joint venture. The joint venue will focus on the development of low-cost, competitive fuel cell systems and related components required for the widespread adoption of fuel cell electric vehicles (FCEVs) for commercial applications.
The total investment from Toyota will be about 5.02 billion yen ($46 million). The company said in a statement that it will hold a 65% share of the new joint venture.
“FCRD is a company that holds tremendous significance for Toyota’s global fuel cell strategies. There is no other automobile market with such a sense of speed, and I am extremely confident that we will gain partners we can work with toward the shared target of expanding the use of FCEVs in China,” said Shigeki Terashi, Operating Officer of Toyota.