Cummins, Daimler Truck and Paccar partner to localize battery cell production

Accelera by Cummins, the zero-emissions business unit of Cummins (CMI), Daimler Trucks & Buses, a Daimler Truck (DTRUY) company and Paccar (PCAR) are partnering to accelerate and localize 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, creating highly desirable U.S. manufacturing jobs in the growing clean technology sector. Total investment is expected to be in the range of $2B-$3B for the 21-gigawatt hour, or 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, or 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. Accelera by Cummins, Daimler Truck and Paccar expect to see growing demand for battery technology throughout this decade and U.S. customers will benefit from a dedicated battery cell factory. 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 is a global leader in the manufacture of LFP battery cells for the vehicle industry and is publicly traded on the Shenzhen stock exchange. The transaction is subject to customary closing conditions, and receipt of applicable merger control / regulatory approvals including the submission of a voluntary notice to the Committee on Foreign Investment in the United States.