Toyota to Join Volvo, Daimler in Fuel Cell Joint Venture

The establishment of hydrogen technology as a cornerstone of the global heavy-duty transport strategy has been accelerated following a landmark agreement between Volvo, Daimler Truck, and Toyota. Under the terms of a non-binding agreement signed on March 31, 2026, the Japanese automaker is intended to be integrated as an equal shareholder in cellcentric, the fuel cell joint venture. This collaboration is designed to consolidate the expertise of three of the world’s largest automotive entities to drive the development, production, and large-scale commercialization of hydrogen fuel cell systems.

Under the terms of the agreement, the three manufacturers intend to hold equal equity stakes in Cellcentric, which was originally established in 2021 as a joint venture between Volvo and Daimler Truck. By incorporating Toyota, the partners seek to achieve the industrial scale and investment efficiency required to make fuel cell technology a viable competitor to battery-electric and diesel powertrains in the heavy-duty sector.

The alliance is structured to capitalize on the distinct technological strengths of its participants. Volvo Group and Daimler Truck provide extensive experience in commercial vehicle engineering and manufacturing, while Toyota contributes over three decades of research and development in fuel cell technology, primarily derived from its leadership in the passenger vehicle sector.

A central pillar of the new arrangement is the joint management of fuel cell unit cells—the fundamental building blocks of a hydrogen power system. Toyota and cellcentric will collaborate on the development and production of these cells, as well as the associated architecture and control systems. The objective is to merge the respective proprietary technologies of each company to create a unified, competitive product line for heavy-duty on-road and off-road transport, as well as stationary applications.

“We are thrilled to explore this collaboration with Toyota, so that we through cellcentric can accelerate and create critical mass for hydrogen applications,” says Martin Lundstedt, President and CEO, Volvo Group. “This is an important signal to customers, suppliers, and others in the ecosystem. Given the importance of accelerating the transformation into net-zero transportation, the need of great companies coming together and collaborating is more important than ever. Welcoming Toyota onboard will be a big leap towards realising decarbonisation of our industries”.

Infrastructure and Market Positioning

Beyond the technical development of hardware, the partnership is designed to influence the broader energy landscape. The three companies have committed to working with industry associations and stakeholders across the entire hydrogen value chain to stimulate the early-stage development of hydrogen supply and refueling infrastructure.

This approach addresses a primary barrier to hydrogen adoption: the "chicken-and-egg" dilemma regarding vehicle availability versus refueling networks. By signaling a unified commitment to the technology, the partners aim to provide the market certainty required for infrastructure investors to move forward.

“We are proud that Toyota plans to join cellcentric as a shareholder,” says Karin Rådström, President and CEO, Daimler Truck. “This will enable us to strengthen development and further scale hydrogen technology, which we believe must complement battery-electric drives in decarbonising transport”.

Operational Autonomy and Competition

Despite the deep integration within cellcentric, the agreement emphasizes that the joint venture will remain an independent and autonomous entity. It is positioned to act as a global manufacturer and Tier 1 supplier, serving not only its parent companies but also a broad range of external customers across the heavy-duty spectrum.

Critically, the manufacturers will maintain their current competitive stances in all other business areas. While they will share the high costs and risks of developing core fuel cell modules, they will continue to compete independently in vehicle design, sales, service, and other propulsion technologies. This "co-opetition" model is increasingly common in the automotive industry as firms grapple with the immense capital requirements of the energy transition.

“We are deeply grateful for the opportunity to soon be joining Daimler Truck and Volvo Group as partners in building a hydrogen society,” says Koji Sato, President and CEO, Toyota. “Cellcentric, which possesses deep expertise in commercial fields together with Toyota’s over 30 years of fuel-cell development in the passenger car sector, can combine their strengths to deliver one of the world-leading fuel cell systems for heavy commercial vehicles”. 

Global Context and Next Steps

The partnership aligns with major international policy frameworks, including the European Green Deal and Japan’s Hydrogen Society Act. These policies mandate a significant reduction in transport emissions, a goal that many industry experts believe cannot be met by battery-electric vehicles alone, particularly in long-haul trucking where weight and charging times are critical factors.

“We are extremely proud that Toyota is intending to join as a shareholder of cellcentric, a great sign of trust in our company from one of the world’s leading automotive companies,” says Nicholas Loughlan, Managing Director, Cellcentric. “Together, in this new set-up, we look forward to seizing the opportunity to significantly improve our company across the entire value chain”..

Currently, cellcentric employs more than 560 specialized staff across sites in Germany (Kirchheim/Teck, Esslingen, and Stuttgart) and Canada (Burnaby). The company holds approximately 700 individual patents, which will now be augmented by Toyota’s intellectual property in the sector.

While the agreement is currently non-binding, the parties are moving toward a legally binding contract. The final transaction remains subject to the approval of the respective boards of directors and relevant regulatory authorities. Volvo Group has indicated that the implementation of this transaction is not expected to have a significant impact on its current financial position or results.