Accelera by Cummins, Daimler Truck and PACCAR select Mississippi for battery cell production in the United States
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Insights
The announcement of a joint venture between Accelera by Cummins, Daimler Trucks & Buses US Holding LLC and PACCAR to establish a battery cell manufacturing plant in Marshall County, Mississippi, is a strategic move that reflects the shifting landscape of the commercial vehicle industry towards electrification. The localization of battery cell production for commercial electric vehicles is a critical step in securing the supply chain and reducing dependency on international suppliers. The significance of this venture is underscored by the creation of over 2,000 manufacturing jobs, which not only bolsters the local economy but also supports the broader transition to a green economy.
The choice of lithium-iron-phosphate (LFP) battery technology indicates a focus on safety, longevity and cost-effectiveness, which are essential factors for the commercial transportation sector. LFP batteries are known for their thermal stability and long cycle life, which are particularly beneficial for medium and heavy-duty vehicles that require durable and reliable energy storage solutions. The market implications of this venture are substantial, as it positions the companies to meet the growing demand for electric commercial vehicles, driven by both environmental regulations and the need for operational cost savings.
From a financial perspective, the joint venture represents a significant capital investment and a long-term strategic commitment for Cummins, Daimler Truck and PACCAR. With each entity owning 30% and the technology partner EVE Energy owning 10%, the structure of the venture allows for shared risk and potential for shared rewards. Investors should note the projected operational date of 2027, which indicates a long-term horizon for returns on this investment. However, the anticipated scale of the 21-gigawatt hour factory suggests that the joint venture partners are positioning themselves to capture a sizeable share of the burgeoning electric commercial vehicle market.
The involvement of EVE Energy, a leader in LFP battery cell technology, is likely to enhance the venture's competitive edge by integrating cutting-edge battery design and manufacturing processes. For stakeholders, the venture's alignment with the Paris Climate Agreement and commitment to decarbonization may offer reputational benefits and align with the growing emphasis on environmental, social and governance (ESG) criteria in investment decision-making.
This initiative is a tangible example of how corporate strategy is increasingly intertwined with environmental policy and climate goals. The joint venture's focus on LFP battery technology for zero-emissions commercial trucks directly supports the global efforts to reduce carbon emissions in line with the Paris Climate Agreement. By localizing production in the United States, the venture is likely to benefit from policy incentives aimed at promoting clean energy and sustainable manufacturing practices.
The long-term environmental benefits of this initiative could be significant, as the transportation sector is a major contributor to greenhouse gas emissions. The transition to electric vehicles, particularly in the medium- and heavy-duty segments, is essential for achieving broader climate targets. The commitment from major industry players like Cummins, Daimler Truck and PACCAR signals a proactive approach to environmental stewardship and may influence policy discussions and regulatory frameworks surrounding transportation electrification.
The planned joint venture between Accelera, Daimler Truck and PACCAR was announced in September 2023 and will create scale to deliver cost effective and differentiated battery cell technology that supports the adoption of electric vehicles for medium- and heavy-duty commercial transportation. Accelera, Daimler Truck and PACCAR will each own
“This site selection represents an exciting and tangible step toward advancing our Destination Zero strategy and our vision to lead the industry toward a decarbonized future,” said Jennifer Rumsey, Cummins Chair and Chief Executive Officer. “We are excited to join the
“Localized battery cell production is an important component of delivering our customers – the fleets that keep America and the world moving – cost effective options for decarbonizing their operations,” said John O’Leary, president and CEO, Daimler Truck North America. “We’re grateful to the state of
“The state, the communities and the people of
Accelera, 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 Agreement.
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
About Accelera™ by Cummins:
Accelera by Cummins provides a diverse portfolio of zero-emissions solutions for the world’s most economically vital industries, empowering them to accelerate the transition to a sustainable future. Accelera, a business segment of Cummins Inc., is both a components supplier and integrator, focused on batteries, hydrogen fuel cells, e-axles, traction drive and electrolyzers. Accelera currently has operations in
Cummins, a global power technology leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. Headquartered in
To learn more about Accelera by Cummins, visit accelerazero.com.
About Daimler Truck
Daimler Truck Holding AG ("Daimler Truck") is one of the world's largest commercial vehicle manufacturers, with over 40 main locations and more than 100,000 employees around the globe. The founders of Daimler Truck have invented the modern transportation industry with their trucks and buses a good 125 years ago. Unchanged to this day, the company's aspirations are dedicated to one purpose: Daimler Truck works for all who keep the world moving. Its customers enable people to be mobile and get goods to their destinations reliably, on time, and safely. Daimler Truck provides the technologies, products, and services for them to do so. This also applies to the transformation to CO2-neutral driving. The company is striving to make sustainable transport a success, with profound technological knowledge and a clear view of its customers' needs. Daimler Truck's business activities are structured in five reporting segments: Trucks North America (TN) with the truck brands Freightliner and Western Star and the school bus brand Thomas Built Buses. Trucks
About PACCAR
PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR vehicles combine state-of-the-art diesel and zero-emissions powertrains with comprehensive PACCAR charging solutions and infrastructure support. PACCAR also provides financial services and information technology, and distributes truck parts related to its principal business.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240118663777/en/
Accelera by Cummins Media Contact:
Jon Mills
+1-317-658-4540
jon.mills@cummins.com
Daimler Truck Media Contact:
Anja Weinert
+1-669-600-1478
anja.weinert@daimlertruck.com
PACCAR Media Contact:
Ken Hastings
+1-425-468-7530
ken.hastings@paccar.com
Source: Cummins Inc.
FAQ
What is the future site for advanced battery cell manufacturing for the joint venture involving Cummins Inc.?
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