Daimler Truck and Volvo Group Commit to Hydrogen Fuel Cells

Daimler Truck AG and Volvo Group, two leading companies in the commercial vehicle industry, today presented the strategy for their new fuel cell joint venture cellcentric. As pioneers in the industry, the companies emphasized their clear commitment to the use of hydrogen-based fuel cells in long-haul trucks and beyond.

(Stuttgart/Gothenburg) The partners aim to accelerate this initiative together. cellcentric aspires to become one of the world’s leading manufacturers of fuel cell systems. To achieve this, the company plans to establish one of the largest series productions of fuel cell systems in Europe, with production set to start in 2025. Both cellcentric shareholders are calling for a unified regulatory framework in the EU to expedite the introduction of hydrogen-based fuel cells. This framework should also enable cost parity with conventional drives, making them an economically viable alternative for truck customers.

Martin Daum, CEO of Daimler Truck AG, and Martin Lundstedt, CEO of Volvo Group, announced these ambitious goals today during an exclusive digital event marking the launch of cellcentric. cellcentric will develop, produce, and market fuel cell systems, focusing on their use in long-haul trucks, while also offering the systems for other applications. This joint venture contributes to achieving CO2-neutral and sustainable transport in Europe by 2050 as part of the European Green Deal. cellcentric benefits from decades of expertise and development work from both Daimler Truck AG and Volvo Group.

Electric or Hydrogen Depending on Load and Distance

From the perspective of Daimler Truck AG and Volvo Group, battery-electric and hydrogen-based fuel cell trucks complement each other depending on individual customer applications: The lighter the load and the shorter the distance, the more likely the battery will be used. The heavier the load and the longer the distance, the more likely the fuel cell will be the preferred option.

Martin Daum, Chairman of the Board of Daimler Truck AG and member of the Board of Daimler AG: “Electric trucks with hydrogen-based fuel cell drives will be a key technology for CO2-neutral transport in the future. In combination with purely battery-electric drives, we can offer our customers the best locally CO2-neutral alternatives depending on the application. This will not be possible with battery-electric trucks alone. Together with our partner, Volvo Group, we are fully committed to our fuel cell joint venture cellcentric and are vigorously advancing the development of the technology and the preparation for series production. Regarding the necessary hydrogen infrastructure, green hydrogen is the only sensible long-term solution.”

Achieving the Goals of the Paris Agreement

Martin Lundstedt, CEO of Volvo Group: “It is our collective priority to achieve the goals of the Paris Agreement by 2050 at the latest and thus become CO2-neutral. We believe that hydrogen-based fuel cell technology will play an important role in reaching this milestone. However, we also recognize that it is about more than just the electrification of machines and vehicles. It requires broader collaboration between public and private stakeholders to develop the necessary technology and infrastructure. Therefore, we call for a joint approach from policymakers and governments worldwide to make hydrogen-based fuel cell technology a success. Partnerships like cellcentric are of crucial strategic importance to decarbonize road freight transport.”

The major truck manufacturers in Europe – also supported by Daimler Truck AG and Volvo Group – are calling for the establishment of around 300 high-performance hydrogen refueling stations for heavy commercial vehicles by 2025 and around 1,000 hydrogen stations by 2030 at the latest in Europe. The joint initiative aims to utilize hydrogen as a carrier of green electricity for the operation of electric long-haul trucks – a central component of decarbonizing road freight transport.

CO2-neutral trucks are currently significantly more expensive than conventional vehicles. Therefore, a political framework is needed to ensure both demand and economic viability. Daimler Truck AG and Volvo Group advocate for incentives for CO2-neutral technologies as well as a taxation system based on CO2 and energy content; an emissions trading system could be another option.

Series Production of Fuel Cell Systems and Fuel Cell Trucks

cellcentric is currently working on plans for its large-scale production and plans to announce a site decision in 2022. As an important step towards series production, pilot production is currently being prepared at a new site in Esslingen near Stuttgart. In parallel, cellcentric is increasing ongoing prototype production.

Daimler Truck AG and Volvo Group aim to begin customer trials of fuel cell trucks in about three years and to start series production in the second half of this decade. All vehicle-related activities of the companies will take place independently. Daimler Truck AG and Volvo Group will remain competitors in this regard. This applies to the entire vehicle and product portfolio, especially for the integration of fuel cells into the vehicles.

Joint Venture for Fuel Cell Systems

Daimler Truck AG and Volvo Group founded cellcentric on March 1, 2021. For this purpose, Volvo Group acquired 50 percent of the shares in the existing company Daimler Truck Fuel Cell GmbH & Co. KG for approximately €0.6 billion on a cash and debt-free basis. Daimler Truck AG and Volvo Group had entered into a binding agreement to establish the joint venture in November 2020. A preliminary, non-binding agreement was already signed in April of the same year.

More than 300 highly specialized experts work in interdisciplinary teams at the locations of Nabern, Stuttgart, and Burnaby (Canada) for cellcentric. So far, around 700 individual patents have been granted, underscoring the company’s leading role in technological development.

Photo: © Daimler Truck