The Volvo Group and Daimler Truck AG announced today that the companies have entered into a joint venture focused on the development, production and commercialization of fuel cell systems, primarily for use in heavy-duty trucks. Under the terms of the deal, Volvo will acquire 50% of the partnership interests in Daimler Truck Fuel Cell GmbH & Co. KG for approximately €0.6 billion.

According to the partners, the new venture aims to become a leading global manufacturer of fuel cells, helping the world take a major step towards climate-neutral and sustainable transportation by 2050.

Martin Daum, Chairman of the Board of Management of Daimler Truck AG and Member of the Board of Management of Daimler AG, said:

“For us at Daimler Truck AG and our intended partner, the Volvo Group, 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.”

Martin Lundstedt, President and CEO of the Volvo Group, said:

“In the future, the world will be powered by a combination of battery-electric and fuel-cell electric vehicles, along with other renewable fuels to some extent. The formation of our fuel-cell joint venture is an important step in shaping a world we want to live in.”

The companies stated that the fuel cells developed by the new company will have applications beyond trucks, including stationary power generation.

Closing of the transaction is expected during the first half of 2021, and both companies stated goals to start customer tests of trucks with fuel-cells in about three years and to be in series production during the second half of this decade.