Daimler Truck AG and the Volvo Group have signed an agreement to establish a new joint venture to develop and produce fuel cell systems.

Under the agreement Daimler will consolidate all its current fuel cell activities in the joint venture with the Volvo Group taking a 50 per cent stake in the venture for the sum of approximately €0.6bn.

Martin Lundstedt, Volvo Group president and CEO said: “Electrification of road transport is a key element in delivering the so called ‘Green Deal’, a carbon neutral Europe and ultimately a carbon neutral world. Using hydrogen as a carrier of green electricity to power electric trucks in long-haul operations is one important part of the puzzle, and a complement to battery electric vehicles and renewable fuels. Combining the Volvo Group and Daimler’s experience in this area to accelerate the rate of development is good both for our customers and for society as a whole.”

The goal is to offer heavy-duty vehicles with fuel cells for demanding long-haul applications in series production in the second half of the decade.

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