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Daimler Truck, Cummins, and Paccar: Battery Joint Venture in the USA

US engine specialist Cummins, Daimler Trucks & Buses, and truck manufacturer Paccar are entering a partnership to produce battery cells in the United States. The total investments for the 21-gigawatt-hour factory are expected to amount to 2 to 3 billion dollars.

In Spain on a test drive - Mercedes eActros 600.| Photo: Daimler Trucks
In Spain on a test drive - Mercedes eActros 600.| Photo: Daimler Trucks
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The planned joint venture will manufacture battery cells for electric commercial vehicles and industrial applications, thereby creating U.S. jobs in the growing sector of clean technologies. Cummins' zero-emissions business unit named Accelera, Daimler Truck, and Paccar will each hold 30 percent of the joint venture and jointly control it. Initially, the joint venture will focus on the lithium iron phosphate (LFP) battery technology family for battery-powered commercial vehicles.

"For Daimler Truck, partnerships and a strict focus on costs and smart capital allocation are the most important levers to be successful on the path to sustainable transportation. This planned joint venture enables economies of scale beyond Daimler Truck. It is an important piece of our battery industrialization strategy and ensures access to the right battery cell technology at the right costs," emphasizes Martin Daum, CEO of Daimler Truck.

The LFP battery cells produced by the joint venture offer several advantages over other battery chemistries, including lower costs, longer lifespan, and higher safety, without requiring nickel and cobalt raw materials.

Chinese Battery Corporation on Board

The three companies expect the demand for battery technology to rise this decade, and particularly customers in the U.S. will benefit from a state-of-the-art battery cell factory. EVE Energy will act as a technology partner in the joint venture with a 10 percent stake, bringing its industry-leading expertise in battery cell development and manufacturing. EVE Energy is a global leader in the production of LFP battery cells for the automotive industry and is listed on the Shenzhen Stock Exchange.

"Our vision is a high-quality, locally produced battery technology that improves the operation of our customers and helps them achieve their operational and environmental goals," said Preston Feight, Chief Executive Officer of Paccar.

The strategic joint venture is intended to enable its owners to achieve the necessary scale for access to cost-efficient and differentiated battery cell technology, ultimately creating added value for commercial vehicle customers in North America.

"We have the responsibility to carry out decarbonization in a way that is best for all our stakeholders and the planet. This requires close collaboration with key partners. Today's announcement reflects this approach. We are not only advancing an important technological solution for our customers but also accelerating the energy transition in the United States," explains Jennifer Rumsey, Chair and Chief Executive Officer of Cummins.

What does that mean?

Accelera by Cummins, Daimler Truck, and Paccar see themselves as leaders in transitioning the commercial vehicle industry to zero-emission technologies. The partners are committed to reducing carbon emissions in line with the Paris Climate Agreement. The Inflation Reduction Act by US President Biden also helps stimulate investments in the USA.

Translated automatically from German.
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