Current hydrogen fuel cell models are limited, with BMW’s project highlighting growing industry interest but still limited production scale.

BMW’s development chief says the funding confirms the company’s technology-open strategy and commitment to exploring multiple propulsion options.

BMW is preparing for production with prototypes in Steyr and Munich, collaborating with Steyr-based and Munich-based facilities for early development.

Hydrogen adoption faces challenges in Germany, including very few fueling stations and higher costs for hydrogen relative to other propulsion methods.

Germany and Bavaria approve a roughly €273 million funding package for BMW to develop a hydrogen fuel cell drivetrain under the HyPowerDrive project, with the federal government contributing about €191 million and Bavaria about €82 million.

BMW plans to offer the X5 with five propulsion options by 2028, including a hydrogen fuel cell variant, signaling a technology-diverse approach to future drivetrains.

Hydrogen vehicles are expected to reach the market in 2028, making BMW the only German automaker pursuing hydrogen propulsion at scale.

The coverage frames hydrogen as a strategic hedge against China-dominated battery and rare earth material supply chains, arguing for a second pillar beyond battery electric vehicles.

Federal Transport Minister Patrick Schnieder highlights hydrogen as a central energy carrier for both energy and transportation to bolster Germany’s technological diversity and competitiveness in autos.

There is uncertainty about hydrogen fueling infrastructure in Germany, with hydrogen filling stations reportedly declining, raising questions about deployment of hydrogen-powered cars.

BMW’s development head Joachim Post stresses innovation as the key to solving future mobility challenges, arguing that progress comes from openness to multiple technologies.

Söder advocates technology openness and opposes a Europe-wide ban on new internal combustion engines from 2035, backing a mix of propulsion technologies for different markets.

Bavaria’s Markus Söder reinforces technology openness and supports a diversified propulsion mix, including high-tech combustion, electric, and hydrogen vehicles, while resisting a 2035 EU ban on new ICE vehicles.

Bavarian Economics Minister Hubert Aiwanger calls for rapid development of nationwide hydrogen refueling infrastructure to support hydrogen vehicles.

Industry skepticism persists: expert Ferdinand Dudenhöffer says hydrogen passenger cars will likely remain a niche, with BEVs predominant and BMW’s hydrogen initiative acting largely as a safeguard.

Context: Germany and Bavaria aim to reduce China dependency in autos by supporting hydrogen as a complementary pathway to electric vehicles.

The funding was delivered in Berlin by Federal Transport Minister Schnieder and Bavarian leaders, underscoring the drive to keep Germany’s auto industry innovative and competitive.

The Berlin ceremony featured BMW designations and speeches from Schnieder, Söder, and Aiwanger, the latter a hydrogen advocate.