Toyota and its Chinese partners have launched a new plant in Beijing to develop and manufacture hydrogen fuel cell systems for vehicles. The plant, which has an initial capacity to produce up to 10,000 fuel cell systems annually, is a collaborative effort financially supported by United Fuel Cell System R&D (Beijing) Co. Ltd. and Toyota Sinohytec Fuel Cell Co. Ltd. A second phase of the project is planned to commence in 2026. Despite a 51.8% decrease in Toyota's global Fuel Cell Electric Vehicle (FCEV) sales in the first half of 2024, the interest in fuel cells is growing in China, with around 3,000 FCEVs sold in the country by July 2024. The Chinese government's initiatives to promote fuel cell use in commercial vehicles are spurring partnerships between companies like Toyota and Hyundai to develop fuel cell buses and trucks in China.