Cummins, Daimler Trucks, and Paccar are coming together in a joint venture to manufacture battery cells for electric commercial vehicles. Each company will own 30% of the JV and will share control.
EVE Energy will serve as the technology partner in the joint venture with 10% ownership and will contribute its battery cell design and manufacturing know-how. EVE Energy manufactures LFP battery cells for the vehicle industry and is publicly traded on the Shenzhen stock exchange.
The JV intends to build a 21-gigawatt hour factory with a price tag between $2 billion and $3 billion. The JV 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, according to the companies.
This strategic joint venture enables its owners to create the necessary scale for access to cost effective and differentiated battery cell technology, ultimately creating value for commercial vehicle customers in North America, according to the companies.
“We have the responsibility to decarbonize in a way that is best for all of our stakeholders and the planet,” said Jennifer Rumsey, Cummins chair and CEO, in a statement. “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 Preston Feight, Paccar CEO, in a statement:
“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.
“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,” said Martin Daum, CEO of Daimler Truck, in a statement. “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.”
