(Yicai) Sept. 7 -- Leading Chinese battery manufacturer Eve Energy will set up a power battery joint venture in the United States with Daimler Truck and two other US firms for a total investment of over USD2.6 billion.

The JV will oversee the construction and operation of a 21-gigawatt-hour battery plant, which will initially produce lithium-ion-phosphate batteries for commercial electric trucks, Daimler announced yesterday, adding that Eve Energy will serve as the technology partner and will contribute its industry-leading battery cell design and manufacturing know-how.

The three firms that will team up with Eve Energy are Daimler's unit Daimler Trucks and Buses US Holding, Cummins' zero-emission business unit Accelera, and commercial truck designer Paccar, according to Daimler.

Eve Energy will invest USD150 million for a 10 percent stake in the JV, while Daimler Trucks and Buses US, Accelera, and Paccar will invest USD830 million each for a 30 percent stake, the Huizhou, China’s central Guangdong province-based company announced in a separate statement yesterday.

The three US shareholders will buy all or the vast majority of the batteries produced at the JV plant to use them on designated commercial vehicles in North America, Eve Energy noted.

Establishing a JV to produce batteries for commercial EVs in the US with the three industry heavyweights will coordinate and give full play to their resources, cut their battery development and production costs, and improve Eve Energy's global positioning, the Chinese firm added.

This strategic JV enables its owners to create the necessary scale for access to cost-effective and differentiated battery cell technology, ultimately creating value for commercial vehicle customers in North America, Daimler said.

"We have the responsibility to decarbonize in a way that is best for all of our stakeholders and the planet," said Jennifer Rumsey, chairman and chief executive officer of Cummins. "This requires working closely with key partners."

Editor: Futura Costaglione