A collaboration between Accelera (Cummins Inc’s zero-emissions unit), Daimler Truck, and PACCAR is set to establish a joint venture for the production of battery cells dedicated to electric commercial vehicles and industrial applications. The investment for this 21-gigawatt hour (GWh) factory is estimated to range from $2-3 billion.
Each of the partners, Accelera by Cummins, Daimler Truck, and PACCAR, will possess a 30% ownership stake in the joint venture, allowing them to jointly manage it. Initially, the focus will be on manufacturing lithium-iron-phosphate (LFP) battery technology for commercial battery-electric trucks. The LFP battery cells produced by this venture are expected to offer several advantages, including cost-effectiveness, longer lifespan, and enhanced safety, all without relying on nickel and cobalt raw materials.
Anticipating an increasing demand for battery technology in the coming decade, the partners aim to meet this demand with a state-of-the-art dedicated battery cell factory in the United States. EVE Energy, a global leader in LFP battery cell production for the automotive industry, will participate with a 10% ownership stake, contributing its expertise in battery cell design and manufacturing.
Jennifer Rumsey, Cummins Chair and Chief Executive Officer, highlighted the importance of this collaboration in advancing technology solutions for customers and driving the energy transition in the United States.
Preston Feight, PACCAR Chief Executive Officer, emphasized their vision of delivering high-quality, locally produced battery technology to enhance customer operations and support their environmental objectives.
Martin Daum, CEO of Daimler Truck, underscored the significance of partnerships and cost-effective capital allocation in their strategy for sustainable transportation, viewing this joint venture as a critical element in their battery industrialization plan. It ensures access to the right battery cell technology at the right cost.