Romeo Power to deliver batteries for Peterbilt trucks
The US battery manufacturer Romeo Power has secured another major contract. The PACCAR Group will purchase batteries for its Peterbilt 579EV and 520EV electric truck models in the US and Canada until 2025.
The long-term supply agreement between the two sides covers battery packs as well as modules and battery management systems for PACCAR’s battery electric vehicles, according to a statement. The group is considered the largest truck manufacturer in the United States, and its brands include Kenworth, Peterbilt and DAF.
Specifically, Romeo Power’s components will be used in the Peterbilt 579EV and 520EV models in the US and Canada. Production is expected to start “after 2021”, according to the battery manufacturer. Details of the two models are not given. Peterbilt had already unveiled a mid-size electric truck called the 220EV at CES in January 2019, with the electric drive supplied entirely by Dana. The few technical data that have been published on the drive correspond to those of the Kenworth K270E.
While Dana also supplies the batteries for the 220EV, Peterbilt and its parent company PACCAR have decided to use batteries from Romeo Power for the two models mentioned above. “PACCAR is committed to industry-leading quality and innovation,” says Darrin Siver, senior vice president of the US truck maker. He said Romeo Power’s battery solutions will enable his company to deliver state-of-the-art transportation solutions that improve customers’ operations and environmental performance. “We are pleased to enter into a long-term supply agreement with Romeo Power as they are paving the way for cost-effective electrification within the commercial vehicle sector,” Siver added.
In autumn 2020, Romeo Power had already been contracted by Canadian electric utility vehicle manufacturer Lion Electric to supply batteries for its electric trucks and electric buses. The deal covers Lion Electric’s entire fleet of battery-electric buses and trucks in Classes 6 to 8 (8.84 tonnes and above) and is expected to generate an estimated $234 million in revenue for Romeo Power over a five-year period starting in 2021.
Romeo Power has a production facility in Los Angeles with a capacity of 7 GWh and announced its IPO in October 2020. In 2019, US supplier BorgWarner also invested $50 million in Romeo Power against the backdrop of a joint venture formation. BorgWarner holds a majority of 60 per cent in the joint venture, in addition to a direct 20 per cent stake in Romeo Power Technology.