Chinese battery giant Eve Energy has partnered with Electrified Power, Daimler, and PACCAR to establish a new battery joint venture in the US, CnEVPost reported, citing the company’s exchange announcement.
Interestingly, other reports mention Cummins’ subsidiary as one of the partners instead of Electrified Power.
Purpose
The joint venture aims to expand Eve Energy’s presence in North America’s battery market by focusing on the LFP battery tech family for commercial vehicles.
It also aims to advance the other three companies’ position in the commercial vehicle industry in the region. Electrified Power, Daimler, and PACCAR will buy the vast majority of the JV’s battery products.
Auto Blog reported that the JV aims to establish a 21 GWh LFP battery cell factory in the region.
It intends to prioritize Eve Energy’s partners as its primary customers. Its battery products will reportedly be deployed in the region’s commercial vehicle industry.
To be specific, it will initially supply Daimer’s e-trucks with its produced LFP batteries.
“This planned joint venture enables economies of scale beyond Daimler Truck.”
Martin Daum, Daimler Truck CEO
Capital contribution
The project will have a cumulative investment of $2.64 billion. Of that total, Eve Energy will contribute $150 million in cash in exchange for a 10% stake in the JV.
On the other hand, the three major partners will offer a maximum cash contribution of $830 million each. They will all have 30% of the JV’s equity in return.
The report noted that the JV will have seven members on its board of directors. Eve Energy US can assign one of its trusted executives, while the other three partners will get two spots each.
Notably, Eve Energy and its business units will supply the JV with its technologies to develop and commercialize the products. It will also pay licensing royalties, the press release stated.
Eve Energy’s global battery installations (Jan – Jul)
Eve Energy deployed a total battery capacity of 8 GWh from January to July. This remarkable installation advanced its position to the eighth spot with a market share of 2.2%, SNE Research data revealed on September 5.
Meanwhile, the industry leader remained first, with a notable market share of 3.6%. Its global battery installations reached a whopping 132.9 GWh in the first seven months of the year.
Below are the data for the month of July alone:
See Also:
- India sets ambitious goal to achieve energy independence through clean technology by 2047
- Invinity Energy Systems secures funds to develop UK’s largest grid-scale battery
- CATL signs agreement to supply batteries to US renewable energy development firm Primergy
- Renewable energy costs to further reduce amid clean energy tech transition
- SAIC to develop solid-state batteries with startup QingTao
The JV can significantly benefit the four major companies in ensuriang their business prospects in the battery industry. It can also aid Eve Energy in its global expansion efforts.
