BMW’s plan to unveil its third-generation fuel cell system in 2028 underscores the company’s determination to remain “technology-open” at a time when most automakers are converging on battery electrics. The timing is deliberate: while battery EVs dominate policy incentives and infrastructure investments, BMW is signaling that hydrogen fuel cell electric vehicles (FCEVs) could still claim a meaningful share of the mobility transition—if efficiency and scalability hurdles can be addressed.
Prototype production is underway in Munich and Steyr, where BMW is validating assembly and testing processes for the new stacks. The stated focus—industrialization, quality assurance, and scalability—indicates a shift away from pilot programs toward potential high-volume readiness. Yet the company has not disclosed critical metrics such as stack power output, hydrogen tank capacity, or real-world range, leaving analysts cautious about how competitive the vehicles can be against battery models by the late 2020s.
The collaboration with Toyota, which supplied the entire drive system for BMW’s 2014 prototype and later contributed only individual fuel cells for the iX5 Hydrogen, now enters its third phase. For the 2028 system, both firms are co-developing core fuel cell technology. BMW claims the stack’s power density has been significantly increased, reducing installation space requirements by 25%. This matters: packaging efficiency is a crucial factor in integrating fuel cells across multiple vehicle platforms, ranging from SUVs to sedans and potentially commercial vehicles.
Efficiency remains the benchmark where hydrogen systems must prove their worth. BMW claims that the new system achieves real-world ranges comparable to those of today’s battery-electric vehicles, thanks to optimized components and improved operating strategies. That claim, however, must be weighed against structural disadvantages. Hydrogen refueling networks remain sparse in Europe and virtually absent in most global markets. Without a parallel infrastructure build-out, improved stack performance risks being commercially irrelevant.
BMW’s production strategy reveals another dimension: the Steyr plant in Austria, historically a hub for diesel engines, is being retooled to build sixth-generation electric motors alongside the new fuel cell systems. This dual-line production suggests BMW is hedging its bets, maintaining combustion, battery-electric, and hydrogen capabilities under one roof. Similarly, Landshut will manufacture hydrogen-specific components, including the so-called “BMW Energy Master,” a control unit adapted from the New Class BEVs. By embedding hydrogen within its broader electrification architecture, BMW reduces costs and leverages cross-technology synergies.
Yet the economics of scaling FCEVs remain unresolved. Industry data show fuel cell systems are still significantly more expensive than battery packs on a per-kilowatt basis, and hydrogen supply costs—often above €10/kg in Europe—translate into a higher total cost of ownership. Even if BMW’s compact, higher-density system achieves efficiency gains, it will require upstream breakthroughs in green hydrogen production and distribution to offer a viable alternative.
BMW’s insistence on pursuing FCEVs reflects not only engineering ambition but also a strategic calculation: unlike pure-play EV competitors, it is positioning itself to serve markets where hydrogen may gain traction first, such as heavy-duty transport or regions investing heavily in hydrogen hubs. The 2028 rollout timeline, however, means BMW is betting that geopolitical and industrial dynamics over the next five years will deliver the missing infrastructure. If not, its fuel cell program risks becoming a technically sound solution searching for a market.
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