Toyota Motor Corp. plans to build a prototype "city of the future" at the base of Mount Fuji, powered by hydrogen fuel cells and functioning as a laboratory for autonomous cars, smart homes, artificial intelligence and other technologies.

Toyota unveiled the audacious plan for what it plans to call "Woven City," in a reference to its origins as a loom manufacturer, on Monday at the big CES annual consumer electronics trade show.

"It's hard to learn something about a smart city if you are only building a smart block," said James Kuffner, chief executive officer at Toyota Research Institute-Advanced Development.