Cummins, Daimler Truck, PACCAR to Build Battery Cells in Miss.

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A joint venture including Cummins, Daimler and PACCAR have selected a site in Mississippi for a new battery plant.

The joint venture of Accelera by Cummins, Daimler Trucks & Buses US Holding LLC, and PACCAR has selected a site in Marshall County, Mississippi for an advanced battery cell manufacturing facility.

The planned 21-gigawatt hour (GWh) factory will cost in the range of $2 billion to $3 billion and is expected to start producing battery cells in 2027. The plant will create more than 2,000 U.S. manufacturing jobs, with the option for further expansion as demand grows.

“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, of Daimler Truck North America. "We're grateful to the State of Mississippi and the Marshall County community for joining us in achieving this goal and helping to realize our shared climate goals.” 

The three companies, who are taking a lead in the commercial vehicle sector’s transition to zero-emission technologies, came together in September 2023 to form a joint venture and 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. Screenshot 2024 01 22 At 12 25 11 Pm

Accelera, Daimler Truck, and PACCAR will each own 30% of, and jointly control, the business, which will focus on lithium-iron-phosphate (LFP) battery technology for commercial battery-electric trucks. 

Combined, the joint venture is anticipated to have a substantial impact on the decarbonization of commercial vehicles in North America. Daimler Truck represents truck brands such as Freightliner Western Star and others, while PACCAR owns those carrying the Kenworth, Peterbilt, and DAF names. 

“Our vision is the highest quality, locally produced battery technology to enhance the operations of our customers and help them achieve their operational and environmental goals,” said Preston Feight, PACCAR chief executive officer.

EVE Energy, a manufacturer of LFP battery cells for the vehicle industry, will serve as the technology partner in the joint venture with 10% ownership and will contribute its battery cell design and manufacturing expertise to the plant. 

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“We have the responsibility to decarbonize in a way that is best for all of our stakeholders and the planet,” said Jennifer Rumsey, Cummins chair and CEO. “This requires working closely with key partners. 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.”