Daimler Truck is teaming up with German machinery manufacturer Manz to develop new battery technology for electric trucks, the companies said on Monday.
The partnership will see Daimler's truck unit invest an undisclosed sum in Manz's Battery Test Center, which is based in Augsburg, Germany.
The move comes as the truckmaker ramps up its efforts to develop electric vehicles, saying last year that it would invest more than $1 billion to bring a lineup of battery-powered trucks to market by 2025.
"With our investment in the Battery Test Center, we are underlining our commitment to battery electric drives," said Stefan Buchner, head of Daimler Trucks.
"We are convinced that these will be the key to decarbonizing road freight transport in the future."
Manz, which makes equipment for the lithium-ion battery industry, said the partnership would enable it to expand the capacity of its test center and develop new technologies.
Why electric trucks?
Electric vehicles are seen as a key part of the drive to slash emissions from the transport sector, which is responsible for around a fifth of all greenhouse gas emissions globally.
Trucks, in particular, are a major source of pollution, due to their size and the fact that they typically run on diesel, which emits harmful nitrogen oxides and particulates.
Daimler has said it wants electric trucks to make up 15-20% of its sales by 2030.
What's the plan?
The partnership with Manz is part of that push.
Under the deal, Daimler will take a minority stake in the company's Battery Test Center, which will test batteries for electric trucks from Daimler and other manufacturers.
The test center will also develop new battery technologies, including for solid-state batteries, which are seen as a potential breakthrough for electric vehicles.
"The partnership with Daimler Trucks is a great vote of confidence in our technology and our team," said Manz CEO Dieter Manz.
"We are convinced that electric drives will play a major role in decarbonizing road freight transport in the future."