By GAO Jing
EVE Energy, a developer, manufacturer and distributor of EV batteries, has set up a JV in the United States with Daimler Truck, Paccar, and Cummins to build a battery plant.
EVE Energy will hold a 10 percent stake in the JV, while the other three hold 30 percent each. The joint factory will produce 21 GWh of LFP batteries annually.
Overseas operations have become a significant source of revenue for EVE Energy. In addition to the United States, the company has plans for factories in Hungary and Malaysia. Overseas revenue now accounts for over 30 percent of revenue. EVE Energy also has contracts with American energy storage companies ABS and Powin for at least 23 GWh.
While LFP batteries are widely used in China, they remain uncommon in the US. Furthermore, the Inflation Reduction Act requires that by 2023, over 50 percent of the battery components and materials for electric passenger vehicles must be manufactured or assembled in North America to qualify for a tax credit of US,750 (27,535.88 yuan) per vehicle.
This requirement has led many domestic battery companies to consider building factories in the United States. Prior to EVE Energy's announcement of its factory in the US, companies such as CATL, Gotion High-Tech, and Envision AESC had already revealed plans for U.S. factory construction.
