Cummins, Daimler Trucks and Paccar are launching a joint venture to manufacture batteries in the U.S., the companies announced Wednesday.
The three OEMs will establish an up to $3 billion factory to manufacture lithium-iron-phosphate batteries for commercial electric trucks. The location of the upcoming plant has not been announced.
Each partner will have a controlling interest and own a 30% stake in project, according to the release. China-based battery manufacturer EVE Energy will serve as the technology partner in the joint venture, with 10% ownership.
Cummins Chair and CEO Jennifer Rumsey in a statement said the partnership will accelerate decarbonization by leveraging economies of scale when it comes to production capacity.
"We have the responsibility to decarbonize in a way that is best for all of our stakeholders and the planet,” Rumsey said. “This requires working closely with key partners.”
Keeping production costs in check is another benefit of the partnership, Daimler Truck CEO Martin Daum said in a statement.
"This planned joint venture enables economies of scale beyond Daimler Truck,” Daum said. “It is a key puzzle piece of our battery industrialization strategy, ensuring access to the right battery cell technology at the right cost."