By 2020, the two companies aim to have co-developed a fuel cell stack, hydrogen tank, motor and battery for a production vehicle, based on shared technologies. BMW and Toyota will also jointly assess the supporting infrastructure to make hydrogen-powered vehicles viable, including creating codes and standards for their use.

This latest agreement also extends existing research into lithium-ion battery cells, which began last March. Phase two will involve joint development of a lithium-air battery for electrically-driven vehicles, which offers a much greater energy density than existing lithium-ion units.

Finally, the two companies will work together on new lightweight materials for vehicle structures and bodies, due to be employed in a jointly developed mid-sized sports vehicle which will be shown before the end of 2013.

Norbert Reithofer, chairman of the board of management of BMW AG said: ‘TMC and the BMW Group share the same strategic vision of future sustainable mobility. In light of the technological changes ahead, the entire automotive industry faces tremendous challenges, which we also regard as an opportunity.’

Akio Toyoda, President of TMC said: ‘It is just over a year since we signed our collaborative MoU, and with each day as our relationship strengthens, we feel acutely that we are making steadfast progress. Now, we are entering the phase that promises the fruit.’