Toyota signed a binding agreement with Volvo and Daimler Truck on July 27, 2026, to become an equal partner in cellcentric. The deal still needs regulatory approval. It would give Toyota a one-third stake in the joint venture, which develops and manufactures fuel cell systems for heavy-duty vehicles and other demanding applications.
The partnership shifts Toyota’s strategy as it works with two of Europe’s leading truck manufacturers to scale up hydrogen technology. Toyota brings decades of fuel cell expertise, while the venture will continue to operate independently. The collaboration aims to accelerate hydrogen-powered solutions for trucks and buses, as well as other sectors where battery-electric options face technical limits.
Toyota’s Hydrogen Ambitions
The agreement follows a non-binding memorandum signed in March 2026. The latest deal confirms Toyota’s commitment to hydrogen as a basic part of its future strategy. The company plans to draw on Volvo and Daimler Truck’s industrial scale and reach in Europe, targeting sectors where operators need long range and high payloads for intensive daily use, making hydrogen a practical alternative to diesel.
Toyota says its third-generation fuel cell system, unveiled in February 2025, can last twice as long as its predecessor. Efficiency has improved by 20%, while the new design offers greater driving range and lower production costs. It is also more compact, making integration into a range of commercial vehicles easier.
Next-Gen Fuel Cells: What Changes
Toyota plans to introduce the new fuel cell technology after 2026, initially targeting Europe, Japan, North America, and China. The system is intended for uses ranging from passenger cars and heavy trucks to stationary generators; Toyota also cites trains and ships. For trucks, the company is targeting durability on par with diesel engines, a basic requirement for logistics and freight operators.
Toyota established Hydrogen Factory Europe in 2023 to coordinate its hydrogen push, overseeing development through production and sales, as well as after-sales support. The company aims to achieve carbon neutrality in its European operations by 2040, reflecting hydrogen’s place in its long-term plans.
Hydrogen and Electric: Parallel Paths
Toyota’s move into hydrogen does not mean abandoning battery-electric vehicles. The company’s European electric sales more than doubled in the first half of 2026, with battery EVs accounting for 11% of total deliveries. The Toyota Hilux lineup now offers combustion and electrified models, including battery-electric and hybrid options. A hydrogen-powered Hilux is scheduled for 2028. For heavy transport, Toyota sees hydrogen as a complementary solution, especially where long range and high payloads are critical.
Europe’s Hydrogen Push
European regulation is also driving demand for renewable hydrogen, particularly in industry. By 2030, at least 42% of industrial hydrogen must come from non-biological renewable sources, rising to 60% by 2035. The targets cover specific industrial uses, but signal a broader shift toward cleaner fuels.
Infrastructure remains a major challenge. In 2024, the European Commission allocated over €424 million to alternative fuel projects, including 48 new hydrogen refueling stations. Since 2021, more than 200 hydrogen stations have received support, with an additional €1 billion earmarked for expansion. Toyota’s strategy treats hydrogen and batteries as complementary technologies, with renewable fuels serving a separate role across different mobility needs.
As Toyota, Volvo, and Daimler Truck advance their work through cellcentric, the focus will be on turning technical gains into practical solutions for Europe’s transport sector. Data from Toyota Motor Corporation and the European Commission point to the coming years as a test of whether hydrogen can deliver cleaner, longer-lasting mobility for demanding applications.
