Cummins Partners with Truck Manufacturers and EVE Energy to Build US Battery Plant
Cummins, Daimler Truck, and Paccar to Build Battery Plant in the US
Cummins Inc., an Indiana-based diesel and natural gas engine manufacturer, has announced a partnership with Daimler Truck Holding AG, Paccar Inc., and China’s EVE Energy Co. to build a battery plant in the US. The joint-venture factory is expected to receive an investment of $2 billion to $3 billion. Cummins, Daimler Truck, and Paccar will each hold a 30 percent stake in the venture, while EVE Energy will own 10 percent as their technology partner.
The increasing popularity of electric cars has led to a focus on battery-powered trucks as part of global efforts to reduce emissions from the transportation sector. However, the size and cost of batteries required for heavy-duty vehicles have presented challenges.
The new battery plant, scheduled to begin production in 2027, will initially manufacture lithium-iron-phosphate cells for commercial vehicles. These cells are expected to offer lower cost, longer lifespan, and improved safety compared to other battery chemistries. The companies are currently considering various locations across the US for the factory.
Partnerships Key to Accelerating Adoption of New Technologies
The collaboration between Cummins, Daimler Truck, and Paccar is a logical step for the truck and engine manufacturers, as diesel-powered heavy trucks still offer favorable economics and total cost of ownership. According to Bloomberg Intelligence’s Christopher Ciolino, partnerships play a critical role in helping the industry as a whole accelerate the adoption of new technologies. This joint venture is seen as a step towards improving cost competitiveness.
Daimler Truck, the world’s largest commercial vehicle maker, aims to have battery-electric and fuel cell vehicles account for up to 60 percent of its sales in Europe by 2030. Similarly, Volkswagen’s Traton and Volvo are targeting a 50 percent share within the same timeframe.
Since the signing of the Inflation Reduction Act by President Joe Biden a year ago, US companies have announced $72 billion of investments in the electric vehicle (EV) supply chain. The legislation aims to level the playing field between the US and China, where Chinese companies currently dominate battery production.
