BMW receives 273 million euros in funding for the development of a hydrogen fuel cell

While most automakers believe hydrogen has no future, BMW disagrees. The company has teamed up with Toyota to develop a next-generation fuel cell that is scheduled to launch in the iX5 Hydrogen in 2028. The camouflaged SUV will go down in history as Munich’s first commercially available series hydrogen vehicle. Previous attempts from 1979 were all prototypes.

BMW now benefits from significant domestic support. The Federal Ministry of Transport (BMV) and the Bavarian State Ministry for Economic Affairs, Regional Development and Energy (StMWi) are supporting the BMW “HyPowerDrive” initiative with a total of 273 million euros. At current exchange rates, that equates to $316 million.

Bavaria’s Prime Minister Markus Söder estimates that up to 2,500 jobs could be created. He sees the future in hydrogen fuel cell technology and believes that the funding will help BMW develop “new and sustainable drive systems”. It is still too early to say whether other models will follow beyond the iX5 Hydrogen, which will be launched in 2028. Meanwhile, Söder explained the decision to support the local car manufacturer:

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“We promote research into new technologies instead of subsidizing outdated industries with large sums of money. Because only innovation creates value and jobs in our country in the long term. We must not give up on the car and leave it to competitors like China. We need high-tech combustion engines, but also electric and technologies such as hydrogen. This is only possible with openness to technology and offers for the various markets around the world.”

While the federal government is giving BMW 191 million euros for its hydrogen efforts, the state of Bavaria is contributing 82 million euros. It’s worth noting that the iX5 Hydrogen won’t be the only electric version of the next-gen X5. Before the fuel cell arrives in 2028, a battery-powered electric vehicle has already been confirmed.

The X5 variants without a combustion engine are joined by the usual petrol, diesel and plug-in hybrid derivatives. BMW will launch the “G65” luxury SUV with ICE, PHEV and battery EV powertrains next year. When the fuel cell hits the market in 2028 as the iX5 60H xDrive, it is unlikely to be sold worldwide. It will likely be limited to regions with a reasonable number of hydrogen refueling stations.

Source: Federal Ministry of Transport (BMV)