Daimler Truck AG and the Volvo Group announced on Tuesday that they have signed a preliminary non-binding agreement to establish a new joint venture with the intention of producing fuel cell systems for trucks.
A need for transport
"Transport and logistics keep the world moving, and the need for transport will continue to grow. 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," said Martin Daum, Chairman of the Board of Management Daimler Truck AG and Member of the Board of Management of Daimler AG.
RELATED: HYUNDAI UNVEILS FUEL CELL-POWERED SUV WITH AN IMPRESSIVE RANGE OF 370 MILES
"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 new deal will see Daimler consolidate all its current fuel cell activities while the Volvo Group will acquire 50% in the joint venture for approximately 0.6 billion Euros. The two firms will be 50/50 partners in the venture.
The cooperation is meant to decrease development costs for both companies and accelerate the market introduction of fuel cell systems. The goal is for both firms to provide heavy-duty vehicles with fuel cells in the second half of the decade.
"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. 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," said Martin Lundstedt, Volvo Group President and CEO.
"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. But for this vision to become reality, other companies and institutions also need to support and contribute to this development, not least in order to establish the fuel infrastructure needed."