Toyota and BMW are readying to enter into an agreement to share hydrogen fuel cell technology. In July 2012, Toyota and BMW announced a new partnership to expand their existing cooperation on EV battery R&D. At the time, the two automakers announced that they will work on fuel cells, powertrain electrification, CFRP production, and future vehicle architecture.

Toyota has been working on technology for a fuel-cell powered sedan since 1992 and plans to launch a prototype by 2015. BMW also has its own plans to launch a prototype to market by 2020.

Fuel cell vehicles run on electricity made from a chemical reaction between hydrogen and oxygen and emit no carbon dioxide. They can also go over a distance five times longer than battery-powered electric vehicles with the convenience of fueling up with hydrogen at gas stations in just minutes.

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BMW has previously experimented with hydrogen in internal combustion engines, first in a 7 Series and later a 1 Series Hatchback.

Mercedes-Benz, Nissan, GM, Honda and Hyundai are also working on their own fuel-cell vehicles.