Eve Energy US will hold a 10 percent stake in the joint venture, which will produce batteries primarily for use in designated North American commercial vehicle segments.
(Image credit: Eve Energy)
Chinese lithium battery maker Eve Energy will set up a joint venture in the US with a minority stake to expand into the North American commercial vehicle power battery market.
Eve Energy US Holding LLC, an affiliate of Eve Energy, plans to set up a joint venture in the US with Electrified Power, Daimler Truck, and Paccar Inc, and the joint venture will invest in the construction of battery production capacity, according to an exchange announcement by the battery maker yesterday.
The joint venture shareholders' capital contribution will be capped at a total of $2.64 billion, of which Eve Energy US, with a cash contribution capped at $150 million, will hold 10 percent of the joint venture's equity.
Electrified Power, Daimler Truck, and Paccar each have a cash contribution limit of $830 million and will each hold 30 percent of the joint venture.
The board of directors of the joint venture will consist of seven members, of which Eve Energy US will have the right to designate one and the partners will have the right to designate two each.
The joint venture will receive licenses from Eve Energy or its subsidiaries to develop, manufacture and commercialize the licensed products and pay licensing royalties as agreed, according to the announcement.
The batteries produced by the joint venture will be used primarily in the designated North American commercial vehicle segment, the announcement said.
According to the announcement, Eve Energy's partners will be the main customers of the joint venture and will purchase all or the vast majority of the products.
The move is beneficial for all parties to leverage their resources, and is an important step for Eve Energy to improve its globalized industrial layout, the announcement said.
It is similar to the cooperation between CATL, the world's largest power battery maker, and US automaker Ford, although the two did not set up a joint venture.
Ford announced on February 13 that it will invest $3.5 billion to build a lithium iron phosphate (LFP) battery plant in Marshall, Michigan.
The plant, which is wholly owned by Ford and is the first battery plant in the US to be wholly owned by an automaker, will introduce an LFP battery option for Ford's electric vehicle products, the automaker said at the time.
CATL will provide technical and service support for production at the LFP battery plant, and Ford engineers will be responsible for cell and vehicle integration, it said.
Eve Energy's global power battery installations in January-July were 8 GWh, placing it in eighth place with a 2.2 percent share, according to data released on September 5 by South Korean market researcher SNE Research.
CATL continued to rank first in the world with a 36.6 percent share of the 132.9 GWh of batteries installed in January-July.