Commercial truck manufacturers Daimler Truck and PACCAR and Accelera by Cummins, the zero-emission business arm of Cummins Inc, plan to build a battery cell gigafactory in the US with China’s EVE Energy.

The companies said in a joint statement on Wednesday they plan to invest $2-3 billion in a 21-gigawatt-hours facility. The joint venture will be jointly controlled by Accelera by Cummins, Daimler Truck and PACCAR with a 30% stake each. EVE Energy will own the remaining 10%.

The partners seek to initially focus on lithium iron phosphate (LFP) battery cells for commercial battery-electric trucks. They cite “several advantages” to the chemistry, compared to other technologies, including lower cost, longer life and enhanced safety.

Shenzhen-listed EVE Energy, which is a global leader in LFP battery cell production for the vehicle industry, will contribute its cell design and manufacturing know-how, Kallanish understands.

“For Daimler Truck, partnerships and a strict focus on costs and smart capital allocation are key levers to succeed on the path towards sustainable transportation,” comments company’s ceo Martin Daum. “This planned joint venture enables economies of scale beyond Daimler Truck. It is a key puzzle piece of our battery industrialisation strategy, ensuring access to the right battery cell technology at the right cost.”

The US-based partners also emphasise the importance of localised production and supply chains in the United States, creating “highly desirable” jobs and accelerating the energy transition. Yet, for that to happen, close collaboration with “key partners” is needed.

The JV hasn’t provided an estimate for first production and noted that the transaction remains subject to customary closing conditions and regulatory approvals.