Accelera by Cummins, Daimler Trucks & Buses US Holding, and PACCAR have partnered to manufacture battery cells for electric commercial vehicles and industrial applications in a 21 GWh factory worth $2-3 billion and create U.S. manufacturing jobs in the clean technology sector.
Each of the companies will jointly control and own 30% of the joint venture (JV), which will emphasize the lithium-iron-phosphate (LFP) battery technology family for commercial battery-electric trucks. The LFP battery cells will offer lower cost, longer life, and enhanced safety without the need for nickel and cobalt raw materials.
“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,” said Preston Feight, PACCAR Chief Executive Officer.
With a 10% ownership in the JV, EVE Energy has been appointed as the technology partner for its battery cell design and manufacturing expertise.
The transaction is not only dependent on customary closing conditions and receipt of applicable merger control and regulatory approvals but also the submission of a voluntary notice to the Committee on Foreign Investment in the U.S.
The companies not only expect to experience an increasing demand for the battery technology by the end of 2030 but also assure benefits for the U.S. customers from the battery cell factory. The JV will help owners create a necessary scale for cost-effective and differentiated battery cell technology and create value for commercial vehicle customers in North America.
“For Daimler Truck, partnerships and a strict focus on costs and smart capital allocation are the key levers to succeed on the path towards sustainable transportation,” said Martin Daum, CEO of Daimler Truck.
Accelera by Cummins, Daimler Truck, and PACCAR aim to reduce carbon emissions consistent with the Paris Climate Agreement.