Accelera, a zero-emissions business unit of Cummins, as well as Daimler Truck and PACCAR, have formed a joint venture to advance battery cell production in the United States.

The planned joint venture will manufacture battery cells for electric commercial vehicles and industrial applications, creating US manufacturing jobs in the growing clean technology sector.

Total investment is expected to be in the range of $2-3 billion for the 21-gigawatt hour (GWh) factory.

Accelera by Cummins, Daimler Truck and PACCAR will each own 30% of, and jointly control, the joint venture, which will initially focus on the lithium-iron-phosphate (LFP) battery technology family for commercial battery-electric trucks.

The LFP battery cells produced by the joint venture will be able to offer several advantages compared to other battery chemistries, including lower cost, longer life, and enhanced safety, without the need for nickel and cobalt raw materials.

The partnership expects to see growing demand for battery technology throughout this decade and said US customers will benefit from a  dedicated battery cell factory.

EVE Energy will serve as the technology partner in the joint venture with 10% ownership and will contribute its battery cell design and manufacturing know-how.