Cummins Inc., the Indiana-based diesel and natural gas engine manufacturer, will partner with two truck manufacturers and China’s EVE Energy Co. to build a battery plant in the US.

Cummins, Daimler Truck Holding AG and Paccar Inc. expect to invest $2 billion to $3 billion in the joint-venture factory, the companies said Wednesday. The three firms will each own 30 percent of the venture, while EVE Energy will hold 10 percent as their technology partner.

With electric cars becoming more widespread, battery-powered trucks are next in line as part of global efforts to reduce emissions from the transport sector. But the cost and size of batteries required to power heavy-duty vehicles has been a challenge.

The new factory, set to start making batteries from 2027, will initially focus on lithium-iron-phosphate cells for commercial vehicles. These will offer lower cost, longer life and greater safety than other battery chemistries, the companies said. A range of U.S. locations are under consideration, and a decision is due within the next six months, a Daimler Truck spokesman said.

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