Global Innovators Showcases Battery Solu...
December 18, 2024
The joint venture's LFP battery cells will be able to provide various benefits over conventional battery chemistries, such as reduced cost, longer life, and improved safety, without requiring nickel and cobalt raw materials.
Date: September 7, 2023
Columbus- Accelera by Cummins., the zero-emissions business arm of Cummins Inc, PACCAR and Daimler Trucks & Buses US Holding LLC have joined forces In order to speed up and localize battery cell production and the battery supply chain in the United States. The anticipated joint venture will produce battery cells for industrial and commercial electric vehicles, generating highly sought-after manufacturing employment in the burgeoning clean technology industry. The 21 GWh factory's total investment is anticipated to be in the $2–3 billion range.
Each company will own 30% of the joint venture, which will first concentrate on the lithium-iron-phosphate (LFP) battery technology family for commercial battery-electric trucks, including Accelera by Cummins, Daimler Truck, and PACCAR. The joint venture's LFP battery cells will be able to provide various benefits over conventional battery chemistries, such as reduced cost, longer life, and improved safety, without requiring nickel and cobalt raw materials. Through this decade, Accelera by Cummins, Daimler Truck, and PACCAR anticipate an increase in demand for battery technology, and American customers will gain from the construction of a cutting-edge battery cell facility. With a 10% stake in the joint venture, EVE Energy will serve as the technology partner and provide its incomparable expertise in the design and production of battery cells. EVE Energy, a publicly traded company on the Shenzhen Stock Exchange, is a leader in the production of LFP battery cells for the automotive industry.
Through this joint venture, its owners are able to build the scale required for access to competitive and affordable battery cell technology, ultimately benefiting North American buyers of commercial vehicles.
Jennifer Rumsey, Cummins Chair and Chief Executive Officer said, “We have the responsibility to decarbonize 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.”
Preston Feight, PACCAR Chief Executive Officer said, “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 said, “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 industrialization strategy, ensuring access to the right battery cell technology at the right cost.”
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).
