Toyota to join Volvo and Daimler in producing hydrogen systems for trucks

Three automotive groups will become equal owners of fuel cell manufacturer Cellcentric. The partners hope to accelerate mass production of hydrogen systems for heavy trucks and reduce their cost.

Toyota, Volvo Group and Daimler Truck have signed a legally binding agreement for the Japanese automaker to join the Cellcentric joint venture. After the transaction is complete, each of the three groups will own one-third of the company.

Currently, Cellcentric is a joint venture between Volvo Group and Daimler Truck. They founded it in 2021 to develop, produce and sell fuel cells primarily for heavy commercial vehicles.

A preliminary, non-binding agreement on Toyota joining was concluded by the parties in late March. The new document finalizes the terms of the Japanese group's entry into Cellcentric's capital, though the deal still needs regulatory approval.

The transaction is planned to be completed at the end of 2026 or early 2027. The companies did not disclose the financial terms. Volvo Group stated the transaction will have no significant impact on its earnings or financial position.

The partners aim to combine Volvo's and Daimler Truck's experience in commercial vehicle production with Toyota's expertise in fuel cell technologies and industrial manufacturing. This is expected to help Cellcentric scale up production and make hydrogen systems more competitive.

Cellcentric will continue to operate as an independent company and supply products to various customers. Its systems are designed not only for long-haul and off-road trucks, but also for buses, railway and marine transport, heavy equipment, and stationary power units.

Toyota, Volvo Group and Daimler Truck will continue competing with each other in other lines of business. The cooperation will be focused on developing and producing fuel cells, as well as supporting the development of hydrogen supply and refueling networks.

Cellcentric employs over 560 people in Germany and Canada. The company holds around 700 individual patents related to fuel cell technologies.

Hydrogen trucks currently remain a niche segment due to high vehicle costs, a limited number of refueling stations, and expensive low-carbon hydrogen. However, manufacturers consider fuel cells promising for heavy cargo transportation over long distances, where large batteries can reduce the payload.

At the end of 2026, Daimler Truck plans to hand over a small series of 100 hydrogen-powered Mercedes-Benz NextGenH2 trucks to customers for testing. The claimed range of these vehicles exceeds 1,000 kilometers, with their fuel cell systems provided by Cellcentric.

For the European transport market, the deal means the rise of a more powerful joint supplier of hydrogen power systems. Still, the speed of adoption of such trucks will depend not only on manufacturers' technologies, but also on the cost of hydrogen and the rate at which refueling infrastructure is built.

Sources: Toyota Motor Corporation, Volvo Group, Handelsblatt