Hydrogen fuel cell cars aren’t dead. Japan, Germany, and the US are backing FCEVs for specific, high-demand use cases where batteries struggle—and AI is making the numbers work.
Hydrogen Fuel Cell Cars: Why Japan, Germany & the US Aren’t Letting Go
Most analysts wrote off hydrogen fuel cell electric vehicles (FCEVs) years ago. Battery EVs were cheaper, faster to scale, and actually had places to charge. Yet in late 2025, Japan, Germany, and the United States are still putting real money and policy behind hydrogen cars and trucks.
This matters because FCEVs sit at the intersection of green technology, industrial strategy, and energy security. They’re not just another powertrain option; they’re a bet on who owns the future value chain for hydrogen production, storage, and smart mobility. And increasingly, AI and digital optimization are what make those bets viable.
In this post, I’ll break down why fuel cell vehicles are still on the table, what Japan, Germany, and the US are really trying to achieve, where startups like Hyroad Energy fit in, and how businesses can position themselves around this slow‑burn transition.
1. Why Fuel Cell Electric Vehicles Still Refuse To Die
Fuel cell vehicles survive for one core reason: they solve problems that battery EVs struggle with at scale, especially for heavy duty, long-distance, and high-utilization applications.
Where fuel cells actually make sense
FCEVs convert hydrogen into electricity onboard the vehicle, emitting only water vapor. That alone doesn’t justify the complexity. The real value shows up in specific use cases:
- Heavy-duty trucks driving 500–1,000 km a day
- Long-haul buses and coaches with tight schedules and minimal downtime
- Fleet operations that can refuel at a centralized depot (logistics hubs, ports, airports)
- Regions with constrained grids where mass fast-charging would overload infrastructure
In those segments, three things matter more than almost anything else:
- Refueling time – Hydrogen refueling can be close to diesel timing for trucks.
- Vehicle uptime – Less time waiting at chargers means more billable hours.
- Energy density – Hydrogen stores more energy per kilogram than batteries, so weight and payload penalties can be lower.
Battery EVs are winning the passenger car war. Fuel cells are fighting for the harder, more industrial parts of transport.
The main arguments against hydrogen cars
And yet, there are serious criticisms — many justified:
- Producing hydrogen is still energy-intensive. If it’s made from fossil gas (grey hydrogen), emissions are high.
- Green hydrogen from renewables is more expensive today and limited in supply.
- Hydrogen refueling stations are capital-heavy and sparse.
- Round-trip efficiency (renewable → hydrogen → electricity) is worse than just charging a battery.
So why push FCEVs at all? Because Japan, Germany, and the US aren’t just planning for 2025; they’re positioning for energy, industry, and export advantages in the 2030s and 2040s.
2. Japan, Germany, and the US: Three Different Hydrogen Strategies
The persistence you’re seeing from Japan, Germany, and the US isn’t random. Each country is using fuel cell vehicles as a lever inside a bigger hydrogen and green technology strategy.
Japan: Protecting its auto industry and energy security
Japan has been one of the loudest champions of hydrogen mobility for years. Companies like Toyota and Honda poured billions into fuel cell R&D, and the government backed them with policy and subsidies.
Here’s what Japan is really doing:
- Energy import strategy: Japan lacks domestic fossil and renewable resources at the scale it needs. Hydrogen (and ammonia) imports offer a way to diversify away from oil and gas.
- Industrial continuity: Fuel cells let Japanese OEMs reuse parts of their existing engine and fuel supply chain expertise, instead of flipping overnight to batteries where others may lead.
- Urban and fleet pilots: Japan is deploying FCEV buses and trucks in constrained, predictable environments — ports, airports, and metropolitan logistics — where centralized refueling makes sense.
In short, Japan isn’t betting on every household owning a hydrogen car. It’s betting that keeping a strong footprint in fuel cells buys it leverage in the global clean transport supply chain.
Germany: Hydrogen as industrial backbone, not a consumer toy
Germany’s angle is more about industrial decarbonization and maintaining its role as Europe’s manufacturing hub.
Fuel cell vehicles show up as part of a broader package:
- Green hydrogen for steel, chemicals, and heavy industry – and then using that same hydrogen ecosystem for logistics fleets.
- Truck OEMs like BMW, Daimler, and others piloting hydrogen heavy-duty trucks across European freight corridors.
- Hydrogen corridors on key highways connecting ports, factories, and logistics hubs, where shared infrastructure can be justified.
Germany’s transport planners know that passenger cars will be dominated by battery EVs. Where FCEVs come in is long-haul freight and specialized commercial vehicles operating between nodes of industrial hydrogen demand.
United States: Fragmented, but Texas and startups tell the story
The US picture looks messier on the surface, but there’s a pattern:
- States like California and increasingly Texas are experimenting with hydrogen for heavy-duty freight, ports, and bus fleets.
- Companies such as Nikola, Hyundai (with US pilots), and the startup Hyroad Energy are pushing fuel cell trucks and refueling ecosystems.
- Federal incentives for hydrogen production, especially through clean hydrogen tax credits, are helping make projects pencil out.
Hyroad Energy is a good example of the new wave. These firms aren’t just building a vehicle; they’re:
- Bundling vehicles + hydrogen supply + refueling into a single solution for fleets.
- Using AI and data to optimize routing, tank sizing, station placement, and hydrogen sourcing.
- Targeting customers whose business model depends on uptime: freight operators, logistics firms, regional delivery networks.
The US won’t build a dense hydrogen passenger car network anytime soon. But in freight corridors, ports, oil & gas regions (like Texas), and renewable-rich areas, clustered hydrogen transport is gaining traction.
3. Fuel Cell vs Battery: Where Each Wins in a Green Tech Future
The fuel cell vs battery debate is often framed as a zero-sum fight. That’s misleading. The reality is segmentation, not winner‑takes‑all.
Where battery electric vehicles dominate
Battery EVs are already winning in:
- Urban passenger cars and SUVs
- Short- and medium-distance delivery vans
- Ride-hailing fleets in cities with fast-charging networks
Why?
- Charging infrastructure is scaling much faster than hydrogen.
- Battery prices have dropped dramatically over the last decade.
- Most people drive far fewer kilometers per day than they think and can charge at home or work.
For these use cases, adding hydrogen just adds cost and complexity with no real advantage.
Where fuel cell vehicles have a credible edge
Fuel cell vehicles become more interesting when:
- Vehicles need to run close to 24/7.
- Daily energy demand is so high that charging fast would stress the local grid.
- Payload is critical and heavy batteries would cut into economics.
Think:
- Long-haul trucks crossing multiple states or countries.
- Coaches and intercity buses on fixed tight schedules.
- Heavy-duty port drayage trucks and yard tractors.
In those segments, you need either enormous batteries and megawatt chargers or you move to a hydrogen + fuel cell architecture. Many operators are now trialing both to see which total cost of ownership wins in practice.
The role of AI and digital optimization
This is where green technology gets interesting.
AI and advanced analytics are now used to:
- Simulate fleet behavior under battery vs fuel cell scenarios across routes, seasons, and load profiles.
- Optimize refueling station locations for hydrogen to minimize deadhead miles and downtime.
- Forecast hydrogen demand to match production from renewables, reducing curtailment.
I’ve seen fleet models where hydrogen looked uncompetitive at first, but once you factor in grid upgrade costs, charging peaks, and extra vehicles for downtime, FCEVs became surprisingly close. The “winner” isn’t decided by technology alone — it’s decided by system-level optimization, and that’s where AI is quietly rewriting spreadsheets.
4. Key Players: BMW, Hyundai, Nikola, Hyroad Energy & Co.
The persistence of FCEVs is not just policy-driven. Several automotive and energy players have strong strategic reasons to keep hydrogen in play.
Automakers reinforcing the hydrogen option
- BMW has been testing hydrogen fuel cell SUVs, often positioned as a complement to its battery lineup. Its stance is clear: batteries first, hydrogen reserved for specific high-demand use cases.
- Hyundai is more aggressive on fuel cells, with its NEXO FCEV and heavy-duty hydrogen truck pilots in Europe, Asia, and North America. Hyundai sees hydrogen as part of a larger ecosystem that includes shipping, industry, and trucks.
- Nikola, despite its well-documented controversies, is still pushing hydrogen trucks and stations. The core idea — bundling vehicle, fuel, and infrastructure — remains strategically sound, even if execution has been rocky.
Hyroad Energy and the new “hydrogen-as-a-service” model
US startup Hyroad Energy is part of a newer generation of companies treating hydrogen mobility as infrastructure plus software, not just a vehicle sale.
Their approach (and similar players globally) typically looks like this:
- Sell or lease fuel cell trucks or buses.
- Provide hydrogen supply contracts with guaranteed availability and pricing structures.
- Build and operate depot refueling for fleets, often co-located with logistics hubs.
- Wrap everything in digital tools that track utilization, emissions savings, and cost per kilometer.
For fleet operators, the message is simple: “We’ll make hydrogen transport feel like your current diesel operations, just with lower emissions and smarter data.” That’s a compelling pitch when corporate climate targets collide with operational realities.
5. What This Means for Businesses Planning Their Green Tech Roadmap
The takeaway for most organizations isn’t “buy fuel cell cars.” It’s more strategic: treat hydrogen mobility as a focused tool, not a universal solution.
If you operate fleets
You should at least be running the numbers on where FCEVs might make sense:
- Map your duty cycles. Long-haul, high-utilization, and depot-based operations are prime candidates.
- Model total cost of ownership with both battery and fuel cell options, including:
- Grid upgrades and charging infrastructure
- Hydrogen supply contracts and station CAPEX
- Vehicle downtime and fleet size needs
- Explore pilot projects in regions where hydrogen infrastructure is being built anyway (ports, industrial hubs, specific freight corridors).
If you’re in energy, industry, or logistics
Hydrogen vehicles can be a demand anchor for broader green hydrogen projects:
- Steel plants, chemical producers, and refineries shifting to green hydrogen can extend that ecosystem to trucks and port equipment.
- Logistics operators can partner with hydrogen producers to co-develop refueling hubs.
- Ports and airports can use FCEVs to cut local air pollution while building out long-term hydrogen infrastructure.
Where AI and digital tools add real value
Across all of this, AI-powered green technology is the quiet enabler:
- Demand forecasting makes green hydrogen production more bankable.
- Route and asset optimization can shave double-digit percentages off operating costs.
- Digital twins of fleets and infrastructure let you test hydrogen vs battery strategies without spending millions upfront.
If you’re planning a decarbonized transport strategy for 2030 or 2035, ignoring FCEVs completely is as risky as betting on them for everything. The smart play is to segment your use cases, run the data, and keep hydrogen in the toolkit for those hard-to-electrify corners.
Where Hydrogen Fuel Cell Transport Is Heading Next
Hydrogen fuel cell vehicles aren’t taking over the roads. But they’re not disappearing either. Japan, Germany, and the US are keeping them alive because fuel cells sit at a powerful crossroads: clean transport, industrial policy, and energy transition.
For green technology as a whole, the picture is becoming clearer:
- Battery EVs will carry most passenger miles.
- Fuel cell EVs will target high-demand, high-uptime, infrastructure-friendly niches.
- AI and data systems will decide where each option wins on cost, reliability, and emissions.
If you’re serious about decarbonizing transport in your business, your next step isn’t to pick a side in the hydrogen vs battery debate. Your next step is to map your operations, plug them into solid models, and identify where hydrogen fuel cell electric vehicles could quietly do the heavy lifting.
Because in 2035, the companies that win won’t be the ones that were “pro-battery” or “pro-hydrogen.” They’ll be the ones that were pro-math.