Three popular heavy vehicle manufacturers have combined in the US to advance battery cell production through a new state-of-the-art site
A new global joint venture has been announced combining three major players of the heavy vehicle industry to advance battery cell production in the US.
The new zero-emissions business unit Accelera sees Cummins, Daimler Truck and PACCAR combine to accelerate and localise battery cell production and the battery supply chain in the US.
The new joint venture (JV) will manufacture battery cells for electric commercial vehicles and industrial applications, with total investment expected to be between two and three million dollars for the 21-GWh factory.
Accelera by Cummins, Daimler Truck and PACCAR will each own 30 per cent of, and jointly control, the joint venture, which will initially focus on the lithium-iron-phosphate (LFP) battery technology family for commercial battery-electric trucks.
The LFP battery cells produced by the joint venture will be able to offer several advantages compared to other battery chemistries, including lower cost, longer life and enhanced safety, without the need for nickel and cobalt raw materials.
Accelera by Cummins, Daimler Truck and PACCAR expect to see growing demand for battery technology throughout this decade and US customers will benefit from a state-of-the-art dedicated battery cell factory.
EVE Energy will serve as the technology partner in the joint venture with 10 per cent ownership and will contribute its industry-leading battery cell design and manufacturing know-how.
This strategic joint venture enables its owners to create the necessary scale for access to cost effective and differentiated battery cell technology, ultimately creating value for commercial vehicle customers in North America.
“We have the responsibility to decarbonise in a way that is best for all of our stakeholders and the planet. This requires working closely with key partners,” Cummins chair and CEO Jennifer Rumsey says.
“This 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.”
PACCAR CEO Preston Feight says: “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.”
Daimler Truck CEO Martin Daum says partnerships and a focus on costs and smart capital allocation are key levers for the company’s success when it comes to sustainable transport.
“This planned joint venture enables economies of scale beyond Daimler Truck. It is a key puzzle piece of our battery industrialisation strategy, ensuring access to the right battery cell technology at the right cost,” Daum says.
The transaction is subject to customary closing conditions, and receipt of applicable merger control and regulatory approvals including the submission of a voluntary notice to the Committee on Foreign Investment in the United States (CFIUS).