In a bid to future-proof the battery supply chain in the United States, Accelera by Cummins, Daimler Truck and PACCAR have announced a joint venture to localise battery cell production. The planned 21-gigawatt hour factory will be supported by a 2-3 billion dollar investment and the facility will make cells for electric commercial vehicles and industrial applications.
PACCAR CEO, Preston Feight, said: “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.”
Production will focus on lithium-iron-phosphate battery technology. Compared to alternative battery chemistries that use nickel and cobalt, this technology doesn’t require these raw materials and offers a safer, cheaper solution with a longer life.
Cummins, Daimler Truck and PACCAR will share joint control of the venture and each company will own 30 percent. The remaining 10 percent share will be assigned to Accelera’s technology partner EVE Energy. As a leader in cell design and manufacturing of lithium-iron-phosphate batteries for the vehicle industry, EVE Energy will contribute its technical and manufacturing experience in this area.
Jennifer Rumsey, Cummins chair and CEO said: “We have the responsibility to decarbonize in a way that is best for all of our stakeholders and the planet. This requires working closely with key partners. This 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.”
Accelera anticipates a growing demand for battery technology in the US over the coming years. This facility will enable Accelera to scale battery cell production cost effectively for its commercial vehicle customers in North America.
Martin Daum, CEO of Daimler Truck said, “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. 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.”