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Toyota finally says goodbye to hydrogen — Latest discovery changes it all

by Edwin O.
June 7, 2025
in Mobility
Toyota hydrogen

Credits: Valley Hi Toyota

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For decades, the world industry’s most vocal supporter of hydrogen fuel cell automobiles was Toyota, with billions of dollars spent on the technology. But a tidal wave of scientific discredit and an earth-shattering discovery have led the automaker to change direction. Toyota is now backing away from hydrogen, a significant move toward clean transportation.

Why Toyota’s hydrogen bet came under increasing fire from scientists and industry experts

Toyota’s hydrogen car commitment was first visionary, but later became the target of skepticism for scientists and ecologists. Most scientists claimed that hydrogen fuel cells were less efficient and pricier than battery-electric powertrains. Toyota’s hydrogen emphasis was criticized for holding the industry back from changing to more pragmatic alternatives.

The technology needed to do hydrogen refueling was one huge point of contention. With limited stations and expensive expansion costs, hydrogen cars were questioned. When battery technology developed, the divide between hydrogen and battery-electric vehicles widened further.

The scientific consensus: Battery-electric wins the efficiency race

Increasingly, new evidence revealed that battery-electric cars (BEVs) were far more energy-efficient than hydrogen fuel cell cars. As a validation of top researchers, this perspective placed Toyota even more under pressure to rethink its agenda. Toyota’s competitors, however, marched on with their BEV production, claiming market shares and the spotlight.

The newest breakthrough: What breakthrough finally persuaded Toyota to abandon hydrogen

Yet, new advancements in batteries caused electric cars to cost less, charge faster, and become even better in other ways, too. This made the benefits of hydrogen cars unnecessary, which is why Toyota stopped spending so much on the project. However, Toyota’s leaders admitted that, by financial criteria, hydrogen couldn’t yet deliver. However, Toyota turned toward and put resources into next-generation batteries and electric vehicles.

Business actions were put into categories of following marketplace trends and taking up newly discovered scientific concepts. People’s tastes and preferences are expected to increasingly change as well. Electric cars are becoming more popular with drivers, and unless motor companies change, they will lose out to competitors. Electric is the future of pure motoring, supported by Toyota’s move.

The industry has to keep up with tougher competitors and bring innovative solutions

Postwar history: Toyota is the first big automaker in history to make sense of abandoning hydrogen. If the others, if lucky, do the same, then the move to battery electric vehicles will get a welcome boost. There is also a spend flip and an infrastructure policy. Governments would redirect spending from their hydrogen plans to support the take-up of electric vehicles. It is that redistribution, however, that would have delivered a faster phase-down of fossil fuels and enabled climate ambition.

Problems and solutions for the road ahead

News of Toyota’s bold action surely is ambitious. For the company, it means playing catch-up to four decades of research and development that the auto manufacturers have put into electric automobile technology. Now, though, Toyota’s presence worldwide and its engineering capabilities provide a good base for future success.

Toyota’s withdrawal from hydrogen isn’t a business choice—it’s the way of the industry. As the producer of its choice focuses on electric vehicles, competition for cleaner, more efficient mobility enters a new and exciting age. The world will be watching as Toyota and the other producers take the lead in setting the agenda for mobility.

Toyota’s probable action will also have effects on suppliers and partners in the vehicle supply chain. To make these cuts effective, the company will channel funds to other investments in battery technology that will then invest and partner with them. The diversion would jumpstart global innovation and deliver affordable electric cars to more consumers within a few years, either in Los Molinos, California, or in slums of poor cities on the periphery of Delhi in India.

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