Paccar, Daimler, Accelera JV Delays Battery Cell Production
JV Named Amplify Now Targeting 2028 Start in Mississippi, a Postponement From 2027
Key Takeaways:
- The joint venture of Paccar, Daimler Trucks & Buses and Cummins’ Accelera unit cited weak demand for battery-electric trucks, reduced infrastructure funding and a freight recession for the shift.
- Construction of the $2 billion to $3 billion factory is ongoing as partners plan to supply batteries for hybrid and electric trucks, with production now targeted for 2028.
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Amplify Cell Technologies is pushing back the start of battery cell production at its facility in Mississippi to 2028 from 2027, one of the manufacturer’s three backers revealed publicly for the first time Oct. 21.
Until now, the joint venture between Paccar and Daimler Trucks & Buses U.S. Holding — plus engine maker Cummins’ Accelera unit — had held fast publicly to a 2027 start date despite weaker-than-expected adoption rates for battery-electric trucks, the cratering of government support for infrastructure and the ongoing freight recession shrinking capital expenditures by fleets.
During its third-quarter earnings release, Paccar said it is making good progress on building the factory, but it warned that the start of battery cell manufacturing had slipped.
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The partners announced plans for a battery manufacturing plant and joint venture in September 2023 before picking the Mississippi site in January 2024. Construction on the 2.6 million-square-foot battery factory in Byhalia, Miss., began in July 2024 after the partners hired ex-Ford executive Kel Kearns to run the startup JV in June 2024.
The site in Byhalia beat out 116 site submissions across 24 states, with six states making the long list and three the short list.
Amplify expects the plant to cost $2 billion to $3 billion to build.
Paccar plans to deploy Amplify’s lithium-iron-phosphate batteries in Kenworth, Peterbilt and DAF hybrid and battery-electric trucks.
A look at the 500-acre site where theÌý2.6 million-square-foot battery factory inÌýByhalia, Miss., is being built. (Daimler Trucks)
The appetite for battery-electric trucks — as well as other zero-emission technologies — in North America has underwhelmed.
In April, Kenworth said it would delay the start of serial production of its planned hydrogen fuel cell electric T680 tractor. Production was originally scheduled to begin in 2025.
Kenworth cited a slow buildout of fueling infrastructure as a key reason for the delay. Production of a fuel cell configuration of Peterbilt’s flagship Model 579 on-highway tractor has also been delayed for the same reason.
Fellow Amplify backer Daimler Truck, meanwhile, said slow sales of battery-electric trucks were one of the reasons for laying off 2,000 production plant employees.
Daimler Truck North America’s Portland, Ore., plant builds Freightliner’s eCascadia and eM2 battery-electric trucks as well as Western Star’s X-Series lineup.
Paccar has not publicly commented on any shift changes or job losses at any of its North American manufacturing plants.
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