Distributed Energy Resources, Energy Storage, Industrial - September 8, 2023
Accelera, Daimler Truck and PACCAR Form JV for Battery Cell Production
Accelera by Cummins, the zero-emissions business unit of Cummins Inc., Daimler Trucks & Buses US Holding LLC and PACCAR are partnering to accelerate and localize battery cell production and the battery supply chain in the U.S.
The joint venture will manufacture battery cells for electric commercial vehicles and industrial applications, and the total investment for the 21-gigawatt hour (GWh) factory is expected to be in the range of $2-3 billion.
Each of the companies will own 30% of 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 joint venture 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.
EVE Energy, a manufacturer of LFP battery cells for the vehicle industry, will serve as the technology partner in the joint venture with 10% ownership and will contribute its battery cell design and manufacturing know-how.
“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,” said Jennifer Rumsey, Cummins Chair and CEO, in a statement.