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Germany and Bavaria Award €273 Million to BMW for Hydrogen X5 Planned for 2028

Policymakers frame the investment as a bid to preserve technology diversity in Germany's auto industry.

Overview

  • Officials handed over the funding decision in Berlin, confirming roughly €191 million from the federal government and about €82 million from Bavaria under the EU IPCEI Hydrogen framework.
  • BMW targets series production of a fuel‑cell X5 from 2028 and has begun preparing facilities in Munich, Landshut, and Steyr for component manufacturing, with final vehicle assembly continuing in Spartanburg, USA.
  • HyPowerDrive follows limited iX5 Hydrogen prototypes and extends BMW’s collaboration with Toyota, with a third‑generation fuel‑cell system now being co-developed.
  • Leaders including Patrick Schnieder and Markus Söder touted the project as strengthening competitiveness and safeguarding jobs, with Bavaria citing potential for up to 2,500 positions.
  • Industry experts question mass‑market prospects given high costs and a shrinking network of hydrogen refueling stations in Germany, even as BMW moves toward series production.