Cummins details joint venture for battery cell production
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The zero-emissions business unit of Columbus-based Cummins Inc. is forming a joint venture with three other companies with the goal of growing battery cell production in the United States, the company announced Wednesday.
Accelera by Cummins is teaming up with Daimler Trucks North America in Oregon, Washington-based Paccar, and EVE Energy in Ohio to establish a battery cell manufacturing facility at a location that has not yet been disclosed.
Cummins said the total investment in the factory will be between $2-3 billion.
As part of the partnership, Cummins, Daimler and Paccar will each have 30% ownership in the joint venture. EVE Energy, which is serving as the venture’s technology partner, will have the remaining 10%.
The joint venture will initially focus on the production of lithium-iron-phosphate, or LFP, batteries for commercial battery-electric trucks. Cummins said the LFP battery cells will have a lower cost, longer life and enhanced safety, without the need for nickel and cobalt raw materials.
EVE Energy manufactures LFP battery cells for the automotive industry.
“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,” Cummins CEO Jennifer Rumsey said in a news release. “Not only are we advancing a key technology solution for our customers, but accelerating the energy transition in the United States.”
The companies did not specify how many jobs could be created with the new manufacturing plant.
Daimler Truck manufactures a variety of commercial vehicles, including light, medium and heavy duty trucks, as well as city buses, coaches and bus chassis. Paccar bills itself as a global technology leader in the design, manufacture and customer support of premium trucks under the Kenworth, Peterbilt and DAF brands.
The joint venture remains subject to customary closing conditions and regulatory approvals, including the submission of a voluntary notice to the Committee on Foreign Investment in the United States.
The Accelera by Cummins brand was launched in March as part of Cummins’ goal of advancing efforts with hydrogen fuel cells, battery power and other green technologies.
We’ll have more coverage of the new joint venture with comments from Cummins CEO Jennifer Rumsey in Thursday’s INside Edge Morning Briefing.