The Volvo Group and Daimler Truck have formed a joint venture to produce fuel cells. The goal of the JV, according to the two companies, is to develop, produce, and commercialize the systems for heavy-duty trucks.
Daimler will put all its current fuel cell activities within the 50/50 JV, and Volvo’s half will be funded by 0.6 billion euro, or approximately $650 million. The unit will operate as an independent and autonomous entity, with Daimler and Volvo continuing to be competitors in all other areas of business. Joining forces will decrease development costs for both companies and accelerate the market introduction of fuel cell systems in products used for heavy-duty transport and demanding long-haul applications, according to Volvo.
“Electrification of road transport is a key element in delivering the so-called Green Deal, a carbon-neutral Europe, and ultimately a carbon-neutral world,” said Martin Lundstedt, Volvo Group president/CEO, in a prepared statement. “Using hydrogen as a carrier of green electricity to power electric trucks in long-haul operations is one important part of the puzzle, and a complement to battery-electric vehicles and renewable fuels. Combining the Volvo Group and Daimler’s experience in this area to accelerate the rate of development is good both for our customers and for society as a whole. By forming this joint venture, we are clearly showing that we believe in hydrogen fuel cells for commercial vehicles.”
Said Martin Daum, Daimler Chairman of the Board of Management, in a statement.
“Truly CO2-neutral transport can be accomplished through electric drive trains with energy coming either from batteries or by converting hydrogen on board into electricity. For trucks to cope with heavy loads and long distances, fuel cells are one important answer and a technology where Daimler has built up significant expertise through its Mercedes-Benz fuel cell unit over the last two decades. This joint initiative with the Volvo Group is a milestone in bringing fuel cell powered trucks and buses onto our roads.”
The common goal is for both companies to offer heavy-duty vehicles with fuel cells for demanding long-haul applications in series production in the second half of the decade.
The joint venture will include the operations in Nabern/Germany (currently headquarters of the Mercedes-Benz Fuel Cell GmbH) with production facilities in Germany and Canada.
The signed preliminary agreement is non-binding. A final agreement is expected by Q3 and closing before year-end 2020. All potential transactions are subject to examination and approval by the responsible competition authorities.
Source: The Volvo Group
