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BMW has confirmed it will begin series production of hydrogen fuel cell drivetrains at its Steyr plant in Austria from 2028, marking the company’s first large-scale commercial deployment of the technology after nearly five decades of experimentation.

Context: hydrogen alongside EVs and combustion

The move places hydrogen alongside combustion engines and battery-electric systems within BMW’s product portfolio, reflecting its “technology-open” strategy as the auto industry weighs multiple pathways to decarbonisation. While electric vehicles dominate near-term investment, BMW argues that hydrogen fuel cells could provide an alternative for customers seeking zero-emission options with faster refuelling and longer range.

Technical details of third-generation system

The company’s third-generation fuel-cell system, now in prototype production at competence centres in Munich and Steyr, will be 25% more compact than the version powering its iX5 Hydrogen demonstrator fleet. Engineers say the new design delivers greater power density, efficiency and integration, enabling it to slot into existing vehicle architectures without major modifications.

Toyota, BMW’s long-term partner on hydrogen, will continue supplying the core fuel cells. Both companies are co-developing stack chemistry for passenger and commercial vehicles, which BMW says allows cost sharing in development and procurement. “The launch of the first-ever fuel cell production model from BMW in 2028 will add another exceptionally efficient high-performance drive system with zero emissions to our technology-open product portfolio,” said Joachim Post, BMW’s head of development.

European production network

BMW is reshaping its European manufacturing footprint to accommodate the new drivetrain. At Plant Landshut, production of the hydrogen-specific Energy Master — a control unit regulating power flow between the fuel cell and high-voltage battery at up to 800 volts — is scheduled to start in 2026, with prototypes built in Dingolfing. Landshut will also supply housings and pressure plates for the stacks. Munich remains the hub for prototype assembly and validation.

Klaus von Moltke, senior vice-president of engine production, said Plant Steyr was being readied with new test rigs and assembly lines. “We are proud to be producing another … drive technology at Plant Steyr in future alongside the latest generation of electric motors and combustion engines,” he noted.

Decades of groundwork

BMW’s long pursuit of hydrogen began in the 1970s with modified combustion engines running on liquid hydrogen, followed by the Hydrogen 7 limousine in 2006. Its pivot to fuel cells in the 2010s led to the iX5 Hydrogen fleet, which, while technically successful, was expensive and hand-built. The company hopes the third-generation system will finally enable cost-effective scaling.

Industry implications

For policymakers and industry alike, BMW’s decision underlines both the persistence of hydrogen advocates in passenger cars and the unresolved debate over where the technology will find its strongest foothold. If BMW can achieve series production at scale, hydrogen could become a meaningful complement to batteries in Europe’s decarbonisation mix, though infrastructure and fuel costs remain significant hurdles.