Accelera by Cummins, the emissions-free subsidiary of Cummins Inc., is joining forces with Daimler Trucks & Buses US Holding LLC and PACCAR to expedite and localize battery cell production and the battery supply chain within the United States. This collaborative venture aims to manufacture battery cells tailored for electric commercial vehicles and industrial applications, generating employment opportunities within the booming clean technology sector in the United States. The envisioned 21-gigawatt hour (GWh) factory is anticipated to require a total investment ranging from two to three billion USD.
Cummins, Daimler Truck, and PACCAR are set to collectively own and jointly oversee 30% of a newly formed joint venture. This venture's primary focus, in its initial stages, will revolve around the development of lithium-iron-phosphate (LFP) battery technology tailored for commercial battery-electric trucks. The LFP battery cells produced under this collaboration are anticipated to present several notable advantages when compared to alternative battery chemistries.
The upside to producing LFP battery cells includes lower production costs, extended lifespan, and heightened safety attributes, all achieved without the necessity of using nickel and cobalt raw materials. To give a bit of background on the last part, the reason why excluding nickel and cobalt from production is a benefit is due to the highly inhumane methods by which these materials are mined.
"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."
In anticipation of a growing demand for battery technology in the coming decade, Accelera by Cummins, Daimler Truck, and PACCAR intend to provide U.S. customers with the advantage of a cutting-edge, dedicated battery cell manufacturing facility. Furthermore, EVE Energy, a globally renowned entity listed on the Shenzhen stock exchange, will join the venture as a technology partner with a 10 percent ownership stake.