How does Toyota’s water-powered engine work? It transcends existing fuel technologies by performing electrolysis in real time to create a self-sustaining cycle. Unlike traditional hydrogen vehicles that require cumbersome high-pressure storage tanks, this engine employs a water tank equipped with electrodes. When these electrodes receive high voltages, they immediately separate water into its basic elements like hydrogen and oxygen. This on-the-fly electrolysis eliminates the necessity for external hydrogen storage, resulting in a more compact and lightweight design.