BMW, Toyota Expand Technology Alliance

BMW AG has signed a binding agreement with Toyota Motor Corp. for a long-term partnership to develop a complete fuel-cell system by 2020.

The pact also includes joint research of lightweight technologies for vehicle bodies and a lithium-air battery with significantly more energy density than today's lithium-ion chemistries.

Under the deal, BMW and Toyota aim to complete a feasibility study by year-end to define the concept for a shared midsize sports vehicle platform.

The pact follows a memorandum of understanding between BMW and Toyota in June to team up on electric powertrains, fuel cells, lightweight technologies and the sports vehicle platform.

The two companies had already signed an MOU in December 2011 to partner on next-generation lithium-ion batteries for electric and hybrid vehicles which they began to do last March. BMW also agreed to supply diesel engines to Toyota's European unit.