Daimler Truck Holding, Accelera by Cummins and Paccar are forming a joint venture to advance battery cell production in the U.S. and move ahead with their long-term climate change goals.
In addition, the three say this will significantly accelerate the development of electric vehicle battery production, creating U.S. manufacturing jobs in a rapidly growing sector of the economy with the building of a 21-gigawatt-hour factory that is estimated to cost $2 billion to $3 billion. The location of the facility was not disclosed.
“We have the responsibility to decarbonize in a way that is best for all of our stakeholders and the planet. This requires working closely with key partners. Today’s announcement reflects that action. Not only are we advancing a key technology solution for our customers, but accelerating the energy transition in the United States,” Cummins Chair and CEO Jennifer Rumsey said in a statement.
In all, four companies are involved in the project. Accelera by Cummins (the zero-emission business unit), Daimler and Paccar will each own a 30% share of the venture, and the other 10% will be owned by Eve Energy Co. That company will serve as a technology partner and contribute battery cell design and manufacturing expertise.
🔋 @AcceleraZero, #DaimlerTruck & #PACCAR form joint venture to advance battery cell production in the U.S. #JointVenture to manufacture #battery cells for electric #CommercialVehicles. Investment: $2-3 bn. @EVE_LITHIUM to serve as technology partner.
👉: https://t.co/B2zYjByaBNpic.twitter.com/zbj5GTGtiZ— Daimler Truck AG (@DaimlerTruck) September 6, 2023
“For Daimler Truck, partnerships and a strict focus on costs and smart capital allocation are the key levers to succeed on the path toward sustainable transportation,” Daimler CEO Martin Daum said. “This planned joint venture enables economies of scale beyond Daimler Truck. It is a key puzzle piece of our battery industrialization strategy, ensuring access to the right battery cell technology at the right cost.”
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Said Paccar CEO Preston Feight: “Our vision is the highest quality, locally produced battery technology to enhance the operations of our customers and help them achieve their operational and environmental goals.”
The four companies say initially the process will focus on lithium-iron-phosphate battery technology for commercial battery-electric trucks.
Eve Energy is a fast-growing, China-based company principally engaged in the development, manufacture and distribution of battery products. According to Globaldata.com, its 2022 net revenue was $5.4 billion, an increase of 112% from the previous year. The company is publicly traded on the Shenzhen stock exchange.
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