Accelera by Cummins, Daimler Truck and PACCAR to localise battery cell production in the US

The joint venture will manufacture battery cells for electric commercial vehicles and industrial applications; total investment expected to be in the range of $2-3 billion for the 21 GWh factory.

Autocar Professional BureauBy Autocar Professional Bureau calendar 07 Sep 2023 Views icon5996 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Accelera by Cummins, Daimler Truck and PACCAR to localise battery cell production in the US

Accelera by Cummins, the zero-emissions business unit of Cummins Inc, Daimler Trucks & Buses US Holding, and PACCAR are partnering to accelerate and localise battery cell production and the battery supply chain in the United States.

The planned joint venture will manufacture battery cells for electric commercial vehicles and industrial applications. Total investment is expected to be in the range of $2-3 billion for the 21-gigawatt hour (GWh) factory.

Accelera by Cummins, Daimler Truck and PACCAR will each own 30% of, and jointly control, the joint venture, which will initially focus on the lithium-iron-phosphate (LFP) battery technology family for commercial battery-electric trucks. The LFP battery cells produced by the JV will be able to offer several advantages compared to other battery chemistries, including lower cost, longer life, and enhanced safety, without the need for nickel and cobalt raw materials.

The JV partners expect to see growing demand for battery technology throughout this decade and U.S. customers will benefit from a state-of-the-art dedicated battery cell factory. EVE Energy, a global leader in the manufacture of LFP battery cells for the vehicle industry, will serve as the technology partner with 10% ownership and will contribute its industry-leading battery cell design and manufacturing know-how.

“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,” said Jennifer Rumsey, Cummins Chair and Chief Executive Officer.

“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,” said Preston Feight, PACCAR Chief Executive Officer.

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.”

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