Daimler AG, Ford Motor Company and Nissan Motor Co. have teamed up for joint development of an advanced fuel cell system that leads to launch of the world’s first affordable, mass-market fuel cell electric vehicle in four years.

Daimler has always been a fan of fuel cell vehicles because they don’t have the issues of plug-in EVs such as limited range or slow charging. FCEVs have their on-board generator in form of a fuel cell. The only problem with this concept is that it uses hydrogen as fuel, and making H2 refueling stations is a tricky task that needs government backing.

Now with this large global operation that these three automotive giants are working on across three continents, we can expect major developments over the coming years. Each company will invest equally towards the project. The strategy to maximize design commonality, leverage volume and derive efficiencies through economies of scale will help the ultimate goal, which is launching a production FCEV that is just as convenient as a normal petrol or diesel car.

The new agreement is also said to be a signal to suppliers, policymakers and the industry to encourage further development of hydrogen refueling stations and other infrastructure necessary to allow the vehicles to be mass-marketed.