Daimler Truck selects Mississippi site for new battery factory

Daimler Truck and its partners in the USA have chosen the spot for their joint battery cell factory. Marshall County in Mississippi will see building works commence before Daimler Truck, Paccar, and Cummins' Accelera business begin producing batteries in 2027.

The project goes back to plans announced in September 2023. The 21 GWh factory will produce battery cells for electric commercial vehicles in 2027, create around 2,000 jobs, and expand as demand increases.

The technology partner of the three companies for the production of the LFP cells is Eve Energy. The Chinese also hold ten per cent of the shares, while Daimler Truck, Paccar and Accelera each hold 30 per cent.

The initial announcement last autumn saw the partners slate two to three billion dollars, but today’s release did not confirm the planned investment.

Local news services, however, spoke of a nearly two-billion-dollar facility when reporting about the state’s possible involvement. Mississippi Governor Tate Reeves called a special legislative session on Thursday to finalise the deal, tauting it the second-largest capital investment in state history.

The government was to approve 350 million in state incentives and did so yesterday. The funding includes a $186.7 million grant to the companies to go toward “inside the fence” reimbursements, construction, training, and state agency expediting funds.

Daimler, Paccar and Cummins have yet to confirm the state funding and did not go into much detail about why they chose Marshall County.

John O’Leary, President and CEO of Daimler Truck North America, was “grateful to the state of Mississippi and the Marshall County community for joining us in achieving this goal (of localised battery production).”

“The state, the communities and the people of Mississippi are wonderful business partners for Paccar. We look forward to expanding that partnership in northern Mississippi with this new battery cell factory that will provide industry-leading, cost-effective, zero-emissions solutions for our customers,” said Preston Feight, the company’s chief executive officer.

“This site selection represents an exciting and tangible step toward advancing our Destination Zero strategy and our vision to lead the industry toward a decarbonised future,” said Jennifer Rumsey, Cummins Chair and Chief Executive Officer. “We are excited to join the Marshall County community to drive economic growth and job creation in Mississippi while continuing to expand our strong partnerships and serve the diverse needs of our customers.”

daimlertruck.com, supertalk.fm (Mississippi state funding)