Mercedes-Benz parent Daimler, whose hydrogen-powered car technologies are the most advanced but still prohibitively expensive, will pool investment with its Japanese and U.S. partners under a contract announced on Monday.
The program aims to cut the technology's costs and launch the world's first fuel-cell vehicles for the mass market in 2017, the companies said.
Monday's announcement upgrades Daimler's existing fuel-cell research venture with Ford and brings in Nissan. The German luxury carmaker entered a broad-based strategic alliance with Nissan and its French affiliate Renault (RENA.PA) in 2010.
While Mercedes has been at the forefront of fuel-cell research, German rival BMW had initially backed a rival liquid hydrogen technology. Under last week's deal, BMW gains access to Toyota's fuel cells in exchange for some of its own carbon-fibre know-how.
General Motors Co (GM.N) has made more progress on fuel cells than Daimler or Toyota, GM Chief Executive Dan Akerson said on Monday, but the U.S. carmaker is holding back until refueling networks are rolled out and the technology is less costly.
"None of them are as far along as we are," Akerson told reporters after announcing a $600 million investment in GM's Kansas City, Kansas, assembly plant. "But we're not going to press this thing into the marketplace before the infrastructure is ready."
Hyundai is also betting on fuel cells to leapfrog battery technology and showed hydrogen-powered production models at last September's Paris auto show.
As Daimler and many peers are increasingly convinced, hydrogen cars now offer "the greatest potential for emission-free driving," Weber said.