Accelera by Cummins, Daimler Trucks & Buses US Holding LLC, and PACCAR have announced a strategic joint venture to accelerate battery cell production and supply chain within the United States. The initiative will focus on manufacturing battery cells tailored for electric commercial vehicles and industrial applications. The total investment for this ambitious project is projected to be between $2-3 billion, and the facility will have a 21-gigawatt hour (GWh) production capacity.
Why It Matters
This partnership holds significant implications for the future of clean technology and manufacturing jobs in the U.S. By localizing production, the joint venture intends to strengthen the U.S. economy and create a plethora of high-quality jobs in the fast-growing clean tech sector. Furthermore, this move aligns closely with global commitments to reduce carbon emissions in accordance with the Paris Climate Agreement.
Key Points
- Ownership and Control: Accelera by Cummins, Daimler Truck, and PACCAR will each own 30% of the joint venture, effectively sharing control.
- Battery Technology: Initial efforts will center around Lithium-Iron-Phosphate (LFP) battery technology, renowned for its longer life, lower cost, and enhanced safety features.
- Strategic Partner: EVE Energy, a publicly traded global leader in LFP battery cells, will have a 10% ownership in the venture, contributing its expertise in battery cell design and manufacturing.
- Investment Scope: The estimated total investment for the 21-GWh factory is between $2-3 billion.
Bottom Line
The newly-announced joint venture represents a landmark development for the American clean technology and commercial vehicle sectors. Through a significant financial investment and strategic partnership with EVE Energy, the trio of Accelera by Cummins, Daimler Truck, and PACCAR aims to produce state-of-the-art, cost-effective battery cells that will propel the transition to zero-emission vehicles. Subject to customary closing conditions and regulatory approvals, this initiative is set to further advance the energy transition in the United States, fulfilling both economic and environmental objectives.
