German automaker Daimler has announced on Tuesday that it is collaborating with Swedish auto giant Volvo to establish a $1.3 billion joint venture to make Hydrogen fuel-cell for trucks. Both the automaker are looking for green mobility options aggressively and the joint venture comes as part of their upcoming strategy.
As Daimler Truck chairman Martin Daum has stated, the joint venture is going to be a milestone in bringing fuel cell-powered trucks and buses. Together, both automakers could bring the Hydrogen-powered commercial vehicle in the second half of the decade, said Daimler in the release.
Talking about the partnership, Martin Lundstedt, CEO, Volvo Group, stated, “By forming this joint venture, we are clearly indicating that we believe in hydrogen fuel cells for commercial vehicles.”
As the German automaker says, the Hydrogen-powered electric cars provide a longer range than battery electric vehicles. Furthermore, these vehicles are claimed to be faster to refuel. While several automakers throughout the world have been working on Hydrogen fuel, a range of technological challenges along with refuelling infrastructure has become a barrier for them.
While the number of battery electric vehicles is boosting worldwide, the number of Hydrogen vehicles are minimum. Both Daimler and Volvo aim to grab a large chunk in this sector.
As the automaker states, the joint venture will permit both the automakers to share costs and accelerate the development process for Hydrogen fuel cells for heavy-duty vehicles.
The joint venture will also help both the companies deal with the coronavirus crisis, the statement noted.