Cummins, Daimler and Paccar. A magnificent trio for a ‘Western’ electrification

Accelera by Cummins, Daimler Trucks & Buses US and PACCAR converge to revolutionize the electric market. The goal is ambitious and crucial: localize battery cell production and the battery supply chain in the United States. Two years ago exactly, Cummins and Daimler Truck set a global strategic partnership for medium-duty commercial vehicle engines.

A joint-venture for three partners: Cummins, Daimler and Paccar

A $2-3 billion investment for a 21-gigawatt hour (GWh) factory indicates a significant commitment to advancing electrification technologies, stimulating technological autonomy from the monopoly of China and the Far East in general. This investment aligns with the growing demand for electric vehicles and the need for sustainable energy solutions in various industries. By establishing such a factory, this joint venture can contribute to reducing carbon emissions and promoting sustainable practices in the United States.

Economies of scale

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 (LFP) 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. Accelera by Cummins, Daimler Truck and PACCAR expect to see growing demand for battery technology throughout this decade and U.S. customers will benefit from a state-of-the-art dedicated battery cell factory. EVE Energy will serve as the technology partner in the joint venture with 10% ownership and will contribute its industry-leading battery cell design and manufacturing know-how. EVE Energy is a global leader in the manufacture of LFP battery cells for the vehicle industry and is publicly traded on the Shenzhen stock exchange. This initiative goes in the direction aimed by US President Joe Biden (read the online magazine or enter the PDF).

CEO speaking: Cummins, Daimler and Paccar

“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. Today’s 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,” said Jennifer Rumsey, Cummins Chair and Chief Executive Officer. 

“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,” said Preston Feight, PACCAR Chief Executive Officer. 

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.”