Daimler/Volvo form fuel-cell JV, call for more policy support

London (Quantum Commodity Intelligence) - Automakers Daimler Truck and Volvo Group announced Thursday a €1.2 billion hydrogen-based fuel-cell joint venture named 'cellcentric' aiming to develop, produce and commercialize fuel-cell systems for both long-haul trucking and other applications.

The companies called for more policy support for hydrogen infrastructure at the same time, saying they believed it would be key to realising the global objective for carbon neutrality by 2050.

"As CO2-neutral trucks are currently significantly more expensive than conventional vehicles, a policy framework is needed to ensure demand and affordability...this should include incentives for CO2-neutral technologies and a taxation system based on carbon and energy content," said the statement.

"An emissions trading system could be an additional option," it added.

Volvo acquired a 50% stake in the existing Daimler Truck Fuel Cell company, which will now be called cellcentric, for a stake of €600 million ($726m) in cash following a binding agreement signed in November last year.

The new JV is aiming to start large-scale production of fuel-cell systems in 2025 with more details and the location revealed during 2022.

Purely battery-electric cells will be used for lower cargo weights and for shorter distances and hydrogen-based fuel-cell trucks will tend to be the preferred option for heavier loads and longer distances, said the statement.