By Bob Tita
FRANKFURT (Dow Jones) – The largest truck and engine manufacturers in the USA are betting that the freight industry is ready to switch from diesel engines to battery drives. Diesel engine maker Cummins and truck makers Daimler Truck and Paccar plan to build a $2 billion battery factory in Mississippi to produce batteries for commercial vehicles. The plant, which the companies will operate as a joint venture, is expected to begin producing battery cells in 2027.
The production facility will be the country’s largest facility for the production of batteries for commercial vehicles. Initial production is expected to be enough to power more than 40,000 medium- and heavy-duty trucks annually. The investment is a big bet that the typically risk-averse trucking industry will quickly shift to alternative powertrains as new government emissions standards make it significantly more expensive and restrictive to buy and operate diesel trucks.
Daimler Truck, maker of Freightliner trucks, is the market leader in heavy truck sales, while Paccar, with its Peterbilt and Kenworth brands, is second.
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(END) Dow Jones Newswires
January 18, 2024 4:47 p.m. ET (21:47 GMT)
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