Accelera by Cummins, the zero-emissions business unit of Cummins Inc., Daimler Trucks & Buses US Holding LLC and PACCAR are partnering to accelerate and localize battery cell production and the battery supply chain in the United States.

The planned joint venture will manufacture battery cells for electric commercial vehicles and industrial applications, creating highly desirable U.S. manufacturing jobs in the growing clean technology sector. Total investment is expected to be in the range of $2-3 billion for the 21-gigawatt hour (GWh) factory.

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.

“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.

Accelera by Cummins, Daimler Truck and PACCAR are leading the commercial vehicle sector’s transition to zero emissions technologies. The partners are committed to reducing carbon emissions consistent with the Paris Climate Accords. The transaction is subject to customary closing conditions, and receipt of applicable merger control and regulatory approvals including the submission of a voluntary notice to the Committee on Foreign Investment in the United States (CFIUS).