Accelera by Cummins (NYSE:CMI), Daimler Trucks & Buses US Holding LLC, and PACCAR (NASDAQ:PCAR) are forming a JV in the US to accelerate and localize battery cell production and the battery supply chain. Here are key things to know:
- The planned joint venture will manufacture battery cells for electric commercial vehicles and industrial applications, with a total investment of $2-3 billion for a 21-gigawatt hour (GWh) factory.
- Each partner, Accelera by Cummins, Daimler Truck, and PACCAR, will own 30% of the joint venture, with EVE Energy holding 10% ownership and contributing battery cell design and manufacturing expertise.
- The joint venture will focus on lithium-iron-phosphate (LFP) battery technology, offering advantages such as lower cost, longer life, and enhanced safety without the need for nickel and cobalt raw materials.
- The strategic partnership aims to create the necessary scale for cost-effective and differentiated battery cell technology, benefiting commercial vehicle customers in North America.
- The transaction is subject to customary closing conditions and regulatory approvals, including review by the Committee on Foreign Investment in the United States (CFIUS).
- EVE Energy, a global leader in LFP battery cell manufacturing, will serve as the technology partner in the joint venture, contributing its industry-leading expertise in battery cell design and production.