Cummins Inc.’s zero-emission division, Accelera by Cummins, is teaming up with Daimler Trucks & Buses US Holding LLC (a Daimler Truck Group Company) and PACCAR to expedite and localise the production of battery cells and the battery supply chain within the United States.
This collaborative venture aims to manufacture battery cells for electric commercial vehicles and industrial applications. The total investment is anticipated to fall within the range of $2-3 billion for a factory capable of producing 21-gigawatt hours (GWh) of batteries.
Accelera by Cummins, Daimler Truck, and PACCAR will each hold a 30% stake in the joint venture, jointly managing its operations. Initially, the focus will be on lithium-iron-phosphate (LFP) battery technology for commercial battery-electric trucks. The LFP battery cells produced through this partnership offer several advantages, including cost-effectiveness, extended lifespan, and enhanced safety, all without the reliance on nickel and cobalt raw materials.
Anticipating increasing demand for battery technology throughout the decade, Accelera by Cummins, Daimler Truck, and PACCAR are poised to provide U.S. customers with a state-of-the-art dedicated battery cell factory.
EVE Energy, with a 10% ownership stake, will serve as the technology partner in the venture, contributing its battery cell design and manufacturing expertise. EVE Energy is a renowned global leader in LFP battery cell production for the automotive industry and is publicly traded on the Shenzhen stock exchange.
Jennifer Rumsey, Cummins Chair and Chief Executive Officer, emphasised the importance of decarbonisation and collaboration, stating, “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. Today’s 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 Chief Executive Officer Preston Feight expressed their vision, stating, “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.”
Martin Daum, CEO of Daimler Truck, highlighted the significance of partnerships and cost-efficiency in their sustainable transportation journey: “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. 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.”
The completion of this transaction is contingent on standard closing conditions and the receipt of requisite merger control and regulatory approvals, including the submission of a voluntary notice to the Committee on Foreign Investment in the United States (CFIUS).
