The binding agreement follows a deal signed in December 2011, which saw the two companies agree to collaborate on various eco developments as well as the supply of BMW diesel engines to Toyota.

The latest agreement is intended to help BMW and Toyota pursue ‘their successful strategic long-term cooperation in the field of sustainable mobility’.

Norbert Reithofer, chairman of the Board of Management of BMW AG, said: ‘TMC and the BMW Group share the same strategic vision of future sustainable mobility. In light of the technological changes ahead, the entire automotive industry faces tremendous challenges, which we also regard as an opportunity. This collaboration is an important building block in keeping both companies on a successful course in the future.’

The firms’ joint development of a fuel-cell vehicle system will include a hydrogen tank, motor and battery as well as a fuel cell stack and system.

The new agreement also covers for collaborative research on ‘lithium-air batteries, with energy density greatly exceeding that of current lithium-ion batteries’.

The two firms will also develop a joint platform concept for a mid-size sports vehicle, due at the end of the year, as well as lightweight vehicle technologies with possible use for the sports car platform as well as other BMW and TMC vehicles.

Akio Toyoda, president of TMC, said: ‘It is just over a year since we signed our collaborative MoU, and with each day as our relationship strengthens, we feel acutely that we are making steadfast progress. Now, we are entering the phase that promises the fruit. While placing importance on what we learn from the joint development, we will work hard together in reaching our common goal of making ever-better cars.’