Stuttgart, Germany; Gothenburg, Sweden – The Volvo Group and Daimler Truck AG have agreed to a joint venture to develop, produce, and commercialize fuel-cell systems for heavy-duty trucks.
The partners hope to make the new company a leading global manufacturer of fuel-cells to move transportation toward climate-neutrality by 2050. Volvo will buy half of Daimler Truck Fuel Cell GmbH & Co. KG for about $700 million.
Closing of the 50/50 joint venture is expected during the first half of 2021. The transaction is still subject to merger control review by relevant authorities, as well as other approvals.
“The hydrogen-based fuel-cell is a key technology for enabling CO2-neutral transportation in the future. We are both fully committed to the Paris Climate Agreement for decarbonizing road transport and other areas, and to building a prosperous jointly held company that will deliver large volumes of fuel-cell systems,” says Martin Daum, chairman of Daimler Truck AG and a board member of Daimler AG.
The joint venture will develop a system with several power stages, including a twin system with 300kW continuous power for heavy-duty long-haul trucks. Based on the demanding conditions in heavy-duty truck applications, the joint venture’s products are also ideally suited for other use cases such as stationary power generation.
In 2020, Rolls-Royce plc and Daimler Truck AG signed an agreement to cooperate on stationary fuel-cell generators for the CO2-neutral emergency power supply of critical facilities such as data centers. The intention is to offer emission-free alternatives to diesel engines, which are currently applied in generators for emergency use. A final cooperation agreement is expected to be signed by the end of the year.