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Amplify Cell Technologies to build US battery factory

EditorNatashya Angelica
Published 04/06/2024, 17:42

COLUMBUS, Ind. & PORTLAND, Ore. & BELLEVUE, Wash. – A joint venture named Amplify Cell Technologies, formed by Accelera by Cummins [NYSE: CMI], Daimler (OTC:MBGAF) Trucks & Buses US Holding LLC [DAX: DTR0CK], and PACCAR (NASDAQ:PCAR) [NASDAQ: PCAR], is set to localize battery cell production for electric commercial vehicles and industrial applications in the United States.

The venture aims to enhance zero-emissions technology and is slated to begin constructing a 21-gigawatt hour (GWh) battery factory in Marshall County, Miss. The facility, which is expected to generate over 2,000 manufacturing jobs, targets to commence production in 2027.

Kel Kearns has been appointed as the CEO of Amplify Cell Technologies. With a background in automotive and manufacturing industries, Kearns will steer the production of lithium-iron-phosphate (LFP) battery cells, which are intended to provide value for commercial vehicle customers in North America.

The three main partners, Accelera, Daimler Truck, and PACCAR, each hold a 30 percent stake in the business, while EVE Energy owns 10 percent, bringing its expertise in battery cell design and manufacturing to the venture.

Jennifer Rumsey, Chair and CEO of Cummins Inc (NYSE:CMI)., stated that the collaboration is a significant move in the company's commitment to decarbonization and in addressing the diverse needs of customers during the energy transition. Similarly, PACCAR CEO Preston Feight emphasized the venture's role in delivering cost-effective and premium quality battery electric powertrains.

John O'Leary, President and CEO of Daimler Truck North America, highlighted that the partnership allows for economies of scale that extend beyond Daimler Truck, aligning with their battery industrialization strategy.

The formation of Amplify Cell Technologies signifies the commitment of Accelera by Cummins, Daimler Truck, and PACCAR to lead the commercial vehicle sector towards zero-emissions technologies, in accordance with the Paris Climate Agreement.

This news is based on a press release statement and reflects the ongoing efforts by major industry players to innovate and invest in sustainable transportation solutions.

In other recent news, Cummins Inc. reported a slight dip in its first quarter revenue to $8.4 billion, a 1% decrease from the previous year. Despite this, the company completed the successful separation of its Filtration business and launched several new products, including the next-generation diesel X15 engine.

The company's 2024 outlook includes a projected revenue decline of 2% to 5%, but anticipates growth in certain sectors, such as a 10% to 15% increase in global power generation markets.

Cummins' Senior Vice President, Tony Satterthwaite, announced his retirement set for September 2024, marking the end of a significant 36-year tenure with the company. Jennifer Rumsey, Chair and CEO of Cummins, praised Satterthwaite's influential role in steering the company through periods of expansion and his pivotal leadership during the COVID-19 pandemic.

In terms of financial goals, Cummins announced its intention to raise long-term financial targets, building on the momentum from its strategic initiatives and ongoing commitments. The company's Board of Directors declared a quarterly cash dividend of $1.68 per share, payable in June 2024.

Lastly, Accelera by Cummins, the zero-emissions segment of Cummins Inc., announced the launch of its latest decarbonizing technologies, including updated hydrogen fuel cell engines, a high-efficiency eAxle, and next-generation batteries. These recent developments are part of the company's broader range of zero-emissions solutions, aiming to facilitate the transition to lower-carbon operations.

InvestingPro Insights

As Accelera by Cummins [NYSE: CMI] takes a pivotal step towards sustainable technology with the formation of Amplify Cell Technologies, its financial health and market standing provide an essential backdrop to this strategic move.

Cummins Inc., a prominent player in the Machinery industry, boasts a solid track record of financial performance and stability. With a market capitalization of $37.64 billion, the company operates with a moderate level of debt, ensuring a strong foundation for funding future ventures.

An InvestingPro Tip highlights that Cummins has not only maintained dividend payments for 54 consecutive years but has also raised its dividend for 18 consecutive years, reflecting a commitment to shareholder returns. Furthermore, analysts have revised their earnings upwards for the upcoming period, indicating confidence in the company's growth trajectory.

With a Price/Earnings (P/E) Ratio on a last twelve months basis as of Q1 2024 standing at 15.58, Cummins trades at a valuation that investors may find appealing, especially considering the company's expected net income growth this year.

InvestingPro Data underscores Cummins' robust financial metrics, including a Revenue Growth of 12.85% over the last twelve months as of Q1 2024, which may signal the company's ability to scale and adapt in a dynamic market. Moreover, the Dividend Yield as of mid-2024 is an attractive 2.44%, further cementing Cummins' position as a reliable investment for income-focused shareholders.

For readers interested in a deeper dive into Cummins' financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/CMI. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to valuable insights that may inform investment decisions in the evolving landscape of zero-emissions technology.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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