BMW and Toyota are to work together on fuel cell and battery technology, along with the development of a lightweight sports car.
The first results of the agreement should arrive as soon as the end of 2013, when the lightweight mid-size sports car should be ready.
This means it is likely that the two companies will work together on an existing project, such as the BMW i8, rather than start from scratch on a new car. Toyota and BMW will also work on lightweight body materials such as reinforced composites.
Both companies have said in a statement that they feel fuel-cell technology has a large part to play in the future of zero-emission motoring. They aim to complete a fuel-cell stack and system, a hydrogen tank, motor and battery by 2020.
In addition, BMW and Toyota will work on a lithium-air battery that should be able to store more energy than the current lithium-ion packs.