In a strategic move to consolidate its competencies in the field of hydrogen, Toyota has established the Hydrogen Factory.
This new organization aims to streamline decision-making processes and enable swift responses to market developments. By bringing together sales, development, and production under one management, Toyota seeks to enhance operational efficiency and strengthen its position in the rapidly evolving hydrogen market.
The scope of the Hydrogen Factory extends beyond Japan, as Toyota plans to establish local bases within the main hydrogen markets of Europe, China, and North America. These bases will drive research, development, and production activities, while also fostering collaborations with existing partners to ensure the supply of affordable fuel cells. Toyota’s technical director, Hiroki Nakajima, emphasizes the importance of achieving higher quantities to realize cost reductions. Currently, Toyota already supplies the fuel cell technology of its Mirai model to external customers, including BMW with their iX5 Hydrogen model.
The Hydrogen Factory’s internal realignment focuses on three key goals. First, Toyota aims to enhance competitiveness and technology by further developing new fuel cell technologies. The company envisions significant cost reductions, with Nakajima highlighting a projected 37% cost reduction for the next generation of fuel cells. Although hydrogen fuel cells are still relatively expensive compared to batteries, Toyota plans to produce approximately 200,000 fuel cells by 2030 to achieve cost parity.
Beyond their own vehicles, Toyota sees potential in supplying light and heavy commercial vehicles from other manufacturers. Toyota has announced plans for a new variant of their fuel cell technology by 2026, offering improved durability and lower maintenance costs compared to diesel engines of similar power output. In fact, commercial vehicles equipped with Toyota’s fuel cell technology could achieve 20% greater range than current models, making them highly efficient and economical.
To facilitate the adoption of hydrogen technology in commercial vehicles, Toyota aims to develop large, standardized hydrogen storage tanks that are 25% cheaper to produce than current versions. Standardization across markets in North America, Europe, and Asia will be crucial to achieve this goal. Additionally, Toyota is exploring the use of small, modular tank systems that can be integrated into various vehicle types, allowing for the conversion of conventional vehicles into hydrogen combustion or fuel cell vehicles.
In its pursuit of a carbon-neutral future, Toyota recognizes the importance of hydrogen production. The company has already developed advanced electrolyzers capable of producing high-purity hydrogen from water using electricity. Another avenue for hydrogen production is through biogas, as exemplified by Toyota’s initiative in Thailand, which converts hydrogen from chicken manure and food waste.
Importantly, hydrogen produced does not need to be used exclusively in fuel cells. Toyota has demonstrated that hydrogen can be burned in a combustion engine in a CO2-neutral manner, as showcased by the Corolla Cross H2 prototype. While less efficient than fuel cell technology, hydrogen combustion engines offer simpler and less complex technology, making them a viable alternative where fuel cells are not suitable. Toyota’s Hydrogen Factory will oversee the development of hydrogen internal combustion engines, furthering the company’s commitment to a carbon-neutral future.
As Toyota takes decisive steps to leverage its expertise in hydrogen, the establishment of the Hydrogen Factory sets the stage for future advancements in fuel cell technology. With a global outlook and a focus on competitiveness, technology, and production, Toyota aims to play a leading role in driving the adoption of hydrogen as a clean and sustainable energy source in transportation.
