Toyota Motor Corp. plans to produce fuel cell systems for commercial vehicles in the Chinese capital of Beijing with local fuel cell system developer SinoHytec Co.
Under an agreement signed this week, the two companies will establish a 50-50 joint venture later this year, Toyota said.
The 8 billion Japanese yen ($721 million) partnership will launch production in Beijing’s economic and technology zone in 2023.
The joint venture will adopt the same fuel cell technology as the Toyota Mirai sedan with its first product, but will enhance power output for application in commercial vehicles, according to Toyota.
Toyota and SinoHytec formed an r&d partnership in August 2020 for fuel cell system development with four major state-owned Chinese automakers – China FAW Group, Dongfeng Motor Group, GAC Motor Group and BAIC Group.
The deal has made the four state-owned companies potential customers for the fuel cell systems that Toyota will build with SinoHytec.
Toyota will become the second global automaker to produce fuel cell systems in China.
Hyundai Motor Co. disclosed in January that it will build fuel cell systems in the south China city of Guangzhou. The Guangzhou factory, due to launch output in the second half of 2022, can initially build 6,500 fuel cell systems per year.