Three of the leading truck manufacturing brands are banding together to produce lithium batteries used to power zero-emission semis. Cummins, Daimler, and Paccar are reportedly investing upwards of $2 billion to build a plant in Mississippi, hoping truckers will transition from diesel-powered heavy-duty commercial vehicles to battery-electrics.
With a timeline to go online in 2027, the Marshall County, MS, facility is expected to be the largest of its kind in the U.S. Projections of the joint venture estimate it will produce more than 40,000 batteries for medium- and heavy-duty trucks during its first full year of operations.
The plant, which the companies will operate as a joint venture, is expected to begin producing battery cells in 2027. China currently manufactures approximately 70 percent of the world’s passenger vehicle and commercial truck batteries.
Industry insiders were taken aback by the significant money the three corporations were pouring into the plant. That’s largely because truck and engine manufacturers have shied away from risky investments in the past. Anteing up billions in hopes the truck transportation industry will leave the convenience and cost-effectiveness of diesel appears to be driven by government regulations.
“The timing of this plant is intentional,” Jennifer Rumsey, chief executive of Cummins, reportedly said. “The demand is going to grow as the regulations continue to drive a reduction in emissions.”
Cummins remains the leading diesel engine maker in the U.S. But states such as California have passed stringent regulations that curb the sale of diesel-powered big rigs in the coming years. Others are quickly following suit in an effort to reduce carbon emissions. After the Environmental Protection Agency (EPA) backed a California clean air rule that exceeded federal standards, the handwriting may be on the wall. Battery-electric trucks may soon be the norm.
Still, the number of battery-electric big rigs sold pales in comparison to those with diesel engines. Only 600,000 zero-emission trucks were sold in the U.S. and Canada. In 2022, an estimated 11 million commercial motor vehicles were sold. That figure was down from 12 million in 2011. And California requires 5 percent of all heavy-duty tractors sold to be zero-emission this year. Other commercial motor vehicle sales must be 9 percent battery-electric, or hydrogen powered.
While the investment may be sizable, the risk may actually be minimal in the big scheme of things. ACT Research forecasts that about 10 percent of U.S. and Canadian big rigs will be battery-powered by the time the plant starts production. There are also expectations that figure will climb to 30 percent by the end of the decade.
Sources:
https://www.statista.com/statistics/265914/commercial-vehicle-sales-in-the-united-states/
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