Cummins, Paccar and Daimler form joint venture

Accelera by Cummins, the zero-emissions business unit of Cummins, (CMI), Daimler Trucks & Buses US Holding, a Daimler Truck Group Company, and PACCAR (PCAR) are partnering to accelerate and localize battery cell production and the battery supply chain in the U.S. 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 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 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. 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.