Ground was broken at the Mississippi site in May 2024, and construction of a 2.6 million-square-foot battery factory in Byhalia began two months later. (Daimler Truck AG)
key takeaways:
- Amplify Cell Technologies expects construction of its Mississippi battery cell factory to be completed by the end of 2026, but production is being delayed due to strong market demand.
- The $2 billion-$3 billion project faced repeated delays as North American demand for battery-electric and fuel cell trucks weakened, leading to an impairment charge of $235 million.
- Engineers will continue to refine battery chemistry and manufacturing technology while Daimler waits for demand before deciding when to begin truck production.
Construction of Amplify Cell Technologies’ planned battery cell production facility in Mississippi is scheduled to be completed by the end of 2026, according to the key executive of one of the joint venture’s shareholders.
However, John O’Leary, CEO of Daimler Trucks North America, said the start of production at the site is still in limbo.
“The plant is running out. It won’t work when it runs out, not immediately. We have to wait for demand to come back into the market before we can do that,” O’Leary told Transport Topics.
Freightliner and Western Star’s parent company Daimler Trucks is one of the three stakeholders, along with Kenworth and Peterbilt owner Packer and Cummins’ Accelera division.
Demand for battery-electric tractors failed to meet expectations over the past few years, while legacy truck makers pushed back hydrogen fuel cell electric truck plans, and startups including Nikola faltered.
Construction of a 2.6 million square foot battery factory in Byhalia, Miss. begins in July 2024.
O’Leary speaks to Transportation Topics reporters in Washington on July 9. (Seth Clevenger/Transportation Topics)
Production at the plant – aimed at meeting the needs of existing and upcoming battery and hydrogen fuel cell electric trucks – was initially scheduled to begin in 2027.
Daimler Truck CEO Carin Radström said on May 6 that the partners have postponed the establishment of manufacturing capacity due to weaker than expected conditions in the battery and fuel cell electric commercial vehicle market in North America.
Daimler Trucks will take an impairment charge of 200 million euros or $235 million as a result of the project delays.
The plant is expected to cost $2 billion to $3 billion to construct. The project’s scheduled start of production had already been pushed back once, with Packer revealing in October 2025 that manufacturing would begin in 2028.
But some work on the project will continue even after the building is completed.
A team of about 30 people — primarily engineers — will continue to work on battery chemistry and battery manufacturing technology, among other things, so that “when we turn it back on, we’re not trying to solve 2028 problems with 2025 ideas,” O’Leary said.
“We certainly still believe in the technology. We still believe in the strategy,” the executive said.
Five-Pronged Powertrain Approach
Battery-electric and hydrogen fuel cell electric trucks are two of Daimler Trucks’ five powertrain technology approaches, along with internal combustion engines running on diesel, hydrogen and natural gas.
In late June, Daimler Trucks revealed it is teaming up with German developer Kieu to begin offering tractors with hydrogen-fueled internal combustion engines as early as 2027, though the initial focus will be on European markets.
Daimler Trucks said it believes trucks with hydrogen ICE powertrains are stronger and have lower system complexity than fuel cells, making them particularly suitable for applications with high payload requirements.
In comparison, the truck manufacturer sees fuel cell technology as an advantage in demanding long-term operation, noting that ranges of more than 1,000 kilometers (621 mi) are possible with minimal and fast refueling.
The Mercedes-Benz NextGenH2 tractor will be key to the fuel cell phase of the engine technology strategy of the world’s largest truck maker. Daimler Trucks said series production of fuel cell trucks is targeted for the early 2030s.
Alex Fraser from Cox Fleet discusses how fleets should respond when a roadside breakdown occurs, testing their safety, compliance and customer service systems simultaneously. Tune in by going above or RoadSigns.ttnews.com.
While Daimler Trucks is focusing on early hydrogen ICE and hydrogen fuel cell initiatives in Europe, the focus is on natural gas-powered ICE engines in North America.
DTNA will offer Freightliner and Western Star customers a choice of six Cummins engines for model-year 2027 trucks, including L9N and X15N natural gas engines.
Freightliner opened its order book for fifth-generation Cascadia tractors powered by X15N engines in spring 2025, boosting renewable natural gas options for carriers.
