Cummins, Daimler, Paccar Halt Mississippi Battery Plant Startup

The three OEMs backing Amplify Cell Technologies have shelved the 2027 startup timeline for the Mississippi battery plant they began building in 2024, citing lighter-than-expected demand for battery-electric Class 8 trucks in North America. No new production date has been set.

When will Amplify Cell Technologies start producing batteries?

Amplify has no new target date. Cummins, Daimler Truck, and Paccar—each holding a 30% stake in the joint venture—told analysts and regulators in early May that equipment installation at the 21-gigawatt-hour Byhalia, Mississippi, plant will be deferred indefinitely. Construction crews will finish the building shell but will not install manufacturing equipment.

"We agreed with our Amplify Cell Technologies joint venture partners to defer the installation of manufacturing capacity," Daimler Truck President and CEO Karin Rådström said on the OEM's May 6 first-quarter earnings call. "Limited construction will continue to ensure that the joint venture remains well-positioned for the future while maintaining flexibility."

How much have the OEMs invested so far?

Each of the three OEMs committed $830 million to Amplify. Roughly half of that—approximately $415 million per partner—has been spent to date. Chinese battery maker EVE Energy holds the remaining 10% stake as Amplify's technology partner. The original plan called for $2 billion to $3 billion in total backing.

The three OEMs announced the joint venture in June 2023. Groundbreaking in Byhalia followed a year later, with the goal of employing more than 2,000 workers to produce cells starting in 2027.

What does weak EV truck demand mean for the plant?

The pause reflects the gap between OEM production capacity and actual fleet orders. Daimler's eCascadia and eM2, Paccar's Kenworth and Peterbilt battery-electric models, and Cummins' battery-electric powertrains have seen slower uptake than the 2023 projections that underpinned Amplify's timeline. Fleets cite upfront cost, charging infrastructure gaps, and range limitations on long-haul routes as barriers to adoption.

The decision leaves the three OEMs dependent on outside cell suppliers—primarily LG Energy Solution, Samsung SDI, and CATL—for the battery packs in their current EV truck models. That exposes them to the same supply-chain and pricing volatility the Amplify venture was designed to mitigate.

Will the plant eventually come online?

The OEMs have not abandoned the project. Finishing the building structure preserves the option to install equipment when demand justifies the capacity. The 21-gigawatt-hour annual output Amplify originally planned would have been enough to supply batteries for tens of thousands of Class 8 trucks per year, assuming roughly 500 to 700 kilowatt-hours per tractor.

The delay mirrors broader caution in the commercial EV space. Tesla expects to build 'many thousands' of Class 8 Semis in 2026 and is offering low-cost charging equipment to fleets, but even Tesla's production ramp has lagged initial targets.

What this means for fleets considering EV trucks

The Amplify pause signals that the three largest North American truck OEMs see 2027 EV demand falling short of the volumes they projected three years ago. For fleets evaluating battery-electric tractors, that translates to continued reliance on imported cells, potential battery-pack cost volatility, and no near-term domestic supply cushion. It also suggests the OEMs themselves expect slower EV adoption than their public roadmaps implied when Amplify was announced.

Fleets that have placed EV orders should confirm with their OEM that battery supply from existing suppliers remains on schedule. The Amplify deferral does not affect current production—Daimler, Paccar, and Cummins are still building EV trucks with cells from their existing partners—but it removes a planned second source that would have increased supply security and potentially driven down pack costs through competition.