September 6, 2023, Columbus, IN, USA / Portland, OR, USA / Bellvue, WA, USA – Accelera by Cummins, a business unit of Cummins Inc. zero-emissions , Daimler Trucks & Buses US Holding LLC and PACCAR-DAF Trucks are collaborating to accelerate and localize battery cell manufacturing and the battery supply chain in the United States. The planned joint venture will produce battery cells for electric commercial vehicles and industrial applications, creating much-desired US jobs in the emerging clean technology sector. The total investment is expected to be US$2-3 billion for the 21 gigawatt-hour (GWh) factory.
Accelera by Cummins, Daimler Truck and PACCAR-DAF Trucks will each own 30% and jointly control the joint venture, which will initially focus on the family of lithium iron phosphate (LFP) batteries for commercial battery trucks. The LFP battery cells produced by the joint venture will be able to offer a number of advantages over other electrochemical battery systems, including lower cost, longer life and increased safety, without the need for nickel and cobalt raw materials. Accelera by Cummins, Daimler Truck and PACCAR-DAF Trucks expect demand for battery technology to grow this decade, and US customers will benefit from a state-of-the-art, dedicated battery cell factory. EVE Energy will act as the technology partner in the joint venture with 10% ownership and will provide its industry-leading battery cell design and manufacturing know-how (technology). EVE Energy is a world leader in the production of LFP battery cells for the automotive industry and is a public company listed on the Shenzhen Stock Exchange.
This strategic joint venture enables its owners to create the necessary scale to access cost-effective and differentiated battery cell technologies, ultimately creating value for commercial vehicle customers in North America. “We have a responsibility to decarbonize in a way that is best for all our stakeholders and the planet. This requires close cooperation with key partners. Today’s announcement reflects that action. We are not only advancing a key technology solution for our customers, but also accelerating the energy transition in the United States,” said Jennifer Ramsey, Chairman and Chief Executive Officer of Cummins.
“Our vision is for the highest quality, locally produced battery technology used to improve our customers’ operations and help them achieve their operational and environmental goals,” said Preston Feith, Chief Executive Officer of PACCAR-DAF Trucks.
Martin Daum, CEO of Daimler Truck, said: “For Daimler Truck, partnerships and strict attention to costs and smart capital allocation are key levers for success on the road to sustainable transport. This planned joint venture offers economies of scale greater than Daimler Truck could achieve. This is a key piece of the puzzle of our battery industrialization strategy, which provides access to the right technology for the production of battery cells at an affordable price.”
Accelera by Cummins, Daimler Truck and PACCAR-DAF Trucks are leading the commercial vehicle sector’s transition to zero-emission technologies. Partners commit to reducing carbon dioxide emissions in accordance with the Paris Climate Agreement.
The agreement is subject to certain closing conditions and the receipt of relevant merger control and regulatory approvals, including the filing of a voluntary notice with the Committee on Foreign Investment in the United States.
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About AcceleraTM by Cummins:
Accelera by Cummins provides a diverse portfolio of zero-emission solutions to the world’s most economically critical industries, enabling them to accelerate their transition to a sustainable future. Accelera, a business segment of Cummins Inc., is both a component supplier and integrator focused on batteries, hydrogen fuel cells, e-axles, traction drive and electrolyzers. Accelera currently operates in North America, Europe and Asia.
Cummins, a global leader in energy technology, is a corporation of complementary business segments that design, manufacture, distribute and service a wide range of energy solutions. Headquartered in Columbus, Indiana, USA, Cummins has approximately 73,600 employees committed to a thriving world. It has a strong distribution and support network in more than 190 countries. In 2022, Cummins earned about $2.2 billion on sales of $28.1 billion.
To learn more about Accelera by Cummins, visit accelerazero.com.
About Daimler Trucks
Daimler Truck Holding AG (“Daimler Truck”) is one of the world’s largest manufacturers of commercial vehicles, with more than 40 major locations and more than 100,000 employees worldwide. The founders of Daimler Truck invented the modern transport industry with their trucks and buses a good 125 years ago. Unchanged to this day, the company’s aspirations are aimed at one goal: Daimler Truck works for everyone who supports movement in the world. Its customers enable people to be mobile and deliver goods to their destination reliably, on time and safely. For this, Daimler Truck provides technology, products and services. This also applies to the transition to CO2-neutral driving. The company strives to make sustainable transport a success, with deep technological knowledge and a clear understanding of the needs of its customers. Daimler Truck’s operations are structured around five reportable segments: Trucks North America (TN) with the Freightliner and Western Star truck brands and the Thomas Built Buses school bus brand. Trucks Asia (TA) with FUSO, BharatBenz and RIZON car brands. Mercedes-Benz (MB) with the truck brand of the same name.
Daimler (DB) buses with Mercedes-Benz and Setra bus brands. Daimler Truck’s new business Financial Services (DTFS) is the fifth segment, the product range in the truck segments includes light, medium and heavy trucks for long-distance transport, distribution and construction related transport, as well as special purpose vehicles used mainly in the municipal and professional sectors. The assortment of the bus segment includes: city, school, intercity, tourist buses and bus chassis. In addition to the sale of new and used commercial vehicles, the company also offers after-sales service and the implementation of connectivity technology solutions.
About PACCAR-DAF Trucks
PACCAR-DAF Trucks is a global technology leader in the design, manufacture and customer support of high quality light, medium and heavy trucks under the Kenworth, Peterbilt and DAF brands. PACCAR-DAF Trucks combine state-of-the-art zero-emission diesel engines and powertrains with PACCAR-DAF Trucks’ comprehensive charging solutions and support in the field. PACCAR-DAF Trucks also provides financial services and information technology, and distributes truck parts related to its core business. Premium class trucks and transport solutions from PACCAR-DAF Trucks move the world into a better future.
