Accelera by Cummins, Daimler Trucks & Buses US Holding LLC and PACCAR announced that they are forming a partnership to further battery cell production and the battery supply chain in the U.S. The intended joint venture aims to produce battery cells for electric commercial vehicles and industrial applications, creating U.S. manufacturing jobs in the clean technology sector, the companies said. The investment for the 21-gigawatt hour factory is estimated between $2 billion to $3 billion.
Each of the three companies will hold a 30% ownership in the joint venture. The primary focus will be on the lithium-iron-phosphate battery technology for commercial battery-electric trucks. These batteries, to be produced by the joint venture, are said to have advantages such as lower cost, longer life and enhanced safety, eliminating the need for nickel and cobalt raw materials. The three companies anticipate an increase in demand for battery technology through the decade. EVE Energy will join the venture as a technology partner with a 10% stake, providing battery cell design and manufacturing expertise.
In the press release, Jennifer Rumsey, Cummins chair and chief executive officer, stated that the collaboration is a step towards an energy transition in the U.S. Preston Feight, PACCAR chief executive officer, emphasized the commitment to quality and local production. Martin Daum, chief executive officer of Daimler Truck, mentioned that partnerships and a strategic focus on costs are essential for sustainable transportation.
The deal remains contingent upon standard closing conditions and relevant regulatory approvals, including a voluntary notice to the Committee on Foreign Investment in the U.S.
