By Colin Kellaher

Engine maker Cummins and truck makers Daimler Truck and Paccar are teaming up in an effort to advance battery-cell production and the battery supply chain in the U.S.

The companies on Wednesday said they are forming a joint venture to make battery cells for electric commercial vehicles and industrial applications, with a planned investment of $2 billion to $3 billion in a 21-gigawatt-hour factory.

Cummins, Daimler Truck and Paccar said they will each own 30% of the venture, which will initially focus on the lithium-iron-phosphate battery-technology family for commercial battery-electric trucks.

The companies said the venture will produce battery cells with lower cost and longer life compared with other battery chemistries, without the need for nickel and cobalt raw materials.

A Daimler Truck representative said the venture partners are working to find an optimal site for the planned manufacturing plant, with the announcement of a location within the next six months.

Battery-cell maker EVE Energy will serve as technology partner in the venture, with a 10% stake, the companies said.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

September 06, 2023 07:08 ET (11:08 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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