Truck & Off-Highway Engineering - October 2023 - 24

Betting big on LFP
battery cells for
ELECTRIC CVs
The first battery cells from the jointventure
LFP cell factory will be produced
for vehicles in North America, with
production scheduled to start in 2027.
Freightliner eCascadia is shown.
Accelera by Cummins, Daimler Truck and Paccar collaborate to establish a
21-GWh dedicated factory in the U.S. with technology partner EVE Energy.
by Ryan Gehm
C
hina remains the clear leader in manufacturing of lithium-ion
battery cells for commercial vehicles and passenger cars, but
North America will claim some of that share in the coming
years as it becomes the fastest-growing regional market for
planned cell capacity, according to a recent report from Clean Energy
Associates (CEA).
As global lithium-ion battery-cell capacity is set to increase by
186% from 2022 to 2025, North America's capacity growth is expected
to outpace Europe's, according to CEA, primarily due to incentives
in the U.S.'s Inflation Reduction Act (IRA).
A similarly optimistic outlook from the Department of Energy's
(DOE) Vehicle Technologies Office shows that total battery manufacturing
capacity in North America is projected to be nearly 20 times
greater in 2030 compared to 2021 - about 1,000 gigawatt-hours
(GWh) per year vs. 55 GWh/year.
Automakers such as Ford (www.sae.org/news/2022/07/ford-battery-materials-security)
previously announced plans to install lithium
iron phosphate (LFP) cell production capacity in North America.
Commercial-vehicle manufacturers similarly are driving growth in this
area, evidenced by a major announcement on Sept. 6 that Accelera
by Cummins, Daimler Truck and Paccar are forming a joint venture to
manufacture LFP battery cells for battery-electric commercial vehicles
and industrial applications.
LFP 'excellent' for CVs
Total investment is expected to be about $2-3 billion for the 21-GWh,
" state-of-the-art " dedicated LFP cell factory. The first battery cells
will be produced for vehicles in North America, with production
scheduled to start in 2027, a Daimler Truck spokesperson shared with
Truck & Off-Highway Engineering.
Accelera by Cummins - the company's zero-emissions business unit
- Daimler Truck and Paccar each will own 30% of the joint venture.
Chinese cell maker EVE Energy will serve as the technology partner
and hold a 10% ownership stake. EVE Energy will contribute its LFP
battery-cell design and manufacturing expertise.
" Twenty-one gigawatt-hour is a very big number in the context of
24 October 2023
trucks and buses, " Jamie Fox, principal analyst at
Interact Analysis, commented on the announcement.
" A 21-GWh plant, operating at full capacity in 2026,
would provide enough batteries for the entire North
American market for all battery-electric buses and
medium- and heavy-duty trucks combined, assuming
about 10% of trucks are electric in that year. "
The partners said that the joint venture initially will
focus on LFP battery cells because they offer several advantages
compared to other battery chemistries such as
NMC (nickel manganese cobalt) lithium-ion technology.
The lower cost of LFP - largely because iron is more
abundant than nickel and cobalt - is a major factor, as is
its longer life and enhanced safety because LFP cells are
less prone to combustion and thermal runaway.
" Based on today's outlook, LFP is an excellent
choice for commercial vehicles, " the Daimler Truck
spokesperson said. " Various metrics or KPIs are considered
in the development and design of the cell
chemistry, and LFP has several advantages in terms of
lifetime, cost and thermal spread resistance. "
Achieving economies of scale
The partners are collaborating to find the optimal location
for the battery-cell production facility. " The team
has narrowed down the list of states and locations to a
few that meet our requirements, avoiding sensitive
geographic locations due to CFIUS [Committee on
Foreign Investment in the United States] considerations,
and is now working on the final selection, " the
spokesperson said. The final location is expected to be
announced within the next six months.
The strategic JV enables the companies to create the
necessary scale to meet the expected growing demand
for battery technology throughout this decade, according
to Daimler Truck CEO Martin Daum. " For Daimler Truck,
TRUCK & OFF-HIGHWAY ENGINEERING
DAIMLER TRUCK
http://www.sae.org/news/2022/07/ford-battery-materials-security
Truck & Off-Highway Engineering - October 2023

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