The joint venture between the two, valued at 1.2 billion euros ($1.3 billion), is "a milestone in bringing fuel cell powered trucks and buses onto our roads," said Daimler Truck chairman Martin Daum. "By forming this joint venture, we are clearly showing that we believe in hydrogen fuel cells for commercial vehicles," added Martin Lundstedt, chief executive of the Volvo group.

Hydrogen-powered electric cars, which emit nothing but water vapour, offer a longer range than electric battery-powered vehicles and are fast to refuel.

But a number of technological hurdles and a lack of refuelling infrastructure have stood in the way, leaving hydrogen engines to account for only a fraction of vehicles on the road.

Most major carmakers have focused instead on ramping up their fully electric and hybrid offerings as they scramble to meet tough new EU emissions targets to combat air pollution.

Copyright Agence France-Presse, 2020