BMW secures €273 million in public funding to scale hydrogen fuel cell vehicles
Hy2Move project receives federal and Bavarian support through IPCEI Hydrogen.
BMW AG has been awarded approximately €273 million in public funding to develop and industrialise hydrogen fuel cell technology for passenger cars. The funding comes through the EU’s Important Project of Common European Interest (IPCEI) Hydrogen programme.
Of the total support, around €191 million will come from Germany’s Federal Ministry for Digital and Transport (BMV), while €82 million will be contributed by the Bavarian State Ministry for Economic Affairs, Regional Development and Energy (StMWi).
The investment will support BMW’s Hy2Move project, aimed at developing an innovative fuel cell electric powertrain that can be integrated into the company’s existing vehicle platforms.
Government backing hydrogen mobility
Germany’s transport commissioner Michael Theurer praised the project, saying:
“With this funding, we are enabling BMW to scale up hydrogen vehicle development and secure value creation and jobs in Germany.”
Bavarian Minister for Economic Affairs Hubert Aiwanger added:
“We are strengthening Bavaria as a location for innovation and future mobility. BMW’s hydrogen project will help anchor a future technology in our state.”
The support reflects Germany’s broader commitment to hydrogen as part of its national and regional energy strategies, and to promoting alternatives to conventional fossil-fuel-based mobility.
Hydrogen as a pillar of BMW’s future strategy
BMW has long viewed hydrogen as a complementary solution to battery-electric mobility, especially for longer-range applications and markets with limited charging infrastructure.
Dr. Joachim Post, BMW Board Member for Development, welcomed the funding as a validation of the company’s forward-looking strategy:
“Only innovation, not bans, can create solutions for the challenges of the future. Technological openness is at the heart of our successful business strategy and, at the same time, the key to successful decarbonisation.
“With the new BMW X5, we are offering five different drive options in series production for the first time, including a hydrogen fuel cell option from 2028. The funding approval confirms our strategy and underscores the commitment of the German Federal Government and the Bavarian State Government to promoting future-proof and marketable innovations.”
The Hy2Move project will focus on developing and scaling:
- Hydrogen storage systems
- Fuel cell stacks
- Hydrogen-specific vehicle components
- Integration into flexible vehicle architectures
This builds on BMW’s work with the iX5 Hydrogen, a pilot vehicle currently in global demonstration trials.
Development and industrialisation will be based primarily at BMW’s Munich and Landshut sites, strengthening Germany’s manufacturing base and technical expertise in hydrogen mobility.
Part of a Europe-wide hydrogen effort
The IPCEI Hydrogen framework is designed to accelerate strategic hydrogen technologies across EU member states by allowing state aid for projects of cross-border significance. Germany has committed over €1.4 billion to IPCEI hydrogen efforts.
BMW’s project joins a growing list of industry-led hydrogen initiatives receiving EU-backed support to deliver clean mobility, energy security, and industrial competitiveness.
