Cummins, Daimler and Paccar partner on $3 billion battery plant for electric trucks

Daimler Truck, Cummins and Paccar are forming a joint venture to build a battery plant in the U.S. to help accelerate production of electric trucks.

The factory is expected to cost between $2 billion and $3 billion to supply 21 gigawatt hours of power, the companies said Wednesday in a statement. China's EVE Energy will serve as technology partner.

The three truckmakers will hold 30% each in the venture, with EVE holding the remaining 10%, according to a statement.

Battery-powered trucks are next in line in reducing emissions from the transport sector, as electric cars become more widespread. So far, the cost and size of batteries required to power heavy-duty vehicles has proved to be a challenge.

The new factory will focus on lithium-iron-phosphate technology for commercial vehicles, offering lower cost, longer life and greater safety than other battery chemistries, the companies said.

Daimler Truck has estimated battery-electric and fuel cell vehicles will make up as much as 60% of its Europe sales by 2030. Volkswagen's Traton and Volvo are aiming for 50% share in that time frame.