FYI, there is no "better" way to use hydrogen that will result in extracting more energy from it than it physically contains and can be released via oxidation. This is not a matter of "development" or "breakthroughs." It is physically impossible. The standard enthalpy change of combustion of hydrogen is 141.83 MJ/kg. Period. That's it. That's all you can ever get out of it, provided you achieve perfect efficiency (which currently we don't). Ongoing research is surely working on getting is closer to 100% efficiency, but it will never get past it. You can't defy the laws of physics.

Insofar as I am aware all current hydrogen vehicles already use fuel cells to generate electricity and use that to drive electric motors for motive power. No one is burning hydrogen in a combustion engine in vehicular applications. There are some power plants that are doing it, though, mostly as a mechanism for storing and later reusing excess energy generated from other sources. You can go cross-eyed reading up on it here, if you are so inclined.

There is the notion of the "hydrogen economy" floating around, that is the use of hydrogen as an energy storage and carrying medium -- not, notably, as a fuel for actual generation of energy -- but it's pretty certain that outside of some limited applications this will always be a worse deal than just taking the energy in the form of electricity and putting it in a wire.