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A $2-3B battery factory for electric trucks is coming to the US

Daimler, Cummins, and PACCAR are forming a joint venture to manufacture battery cells in the US for commercial electric trucks.

The joint venture – which consists of Accelera, the zero-emissions business unit of Cummins; Daimler Trucks & Buses; and large commercial truck maker PACCAR – will build battery cells for commercial electric trucks. Each company will own 30% of the joint venture.

The total investment is expected to be in the range of $2-3 billion for the 21-gigawatt hour (GWh) factory, and the initial focus will be on lithium-iron-phosphate (LFP) battery technology.

China-based EVE Energy, which manufactures LFP battery cells for EVs, will be the technology partner in the joint venture, with 10% ownership. It’s going to bring its battery cell design and “manufacturing know-how” to the table.

Daimler asserts in its announcement that the LFP battery cells produced by the joint venture will be able to offer lower cost, longer life, and enhanced safety without the need for nickel and cobalt raw materials. It uses LFP batteries in its new RIZON medium-duty truck, which we got a chance to drive recently (we’ve also driven Daimler/Freighliner’s other electric truck offerings).

The companies assert that the joint venture enables them to create the scale needed for cost-effective EV batteries, “ultimately creating value for 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 toward 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.”

The companies have not yet announced the EV battery factory’s timeline, nor where in the US the facility will be sited.

Read more: Michigan is building a trailblazing electric truck stop with Daimler, DTE

Photo: Daimler Trucks


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Avatar for Michelle Lewis Michelle Lewis

Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at michelle@9to5mac.com. Check out her personal blog.


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