Solactive Global Lithium Index: to Be Refueled by New Giantic JVs

The Solactive Global Lithium (EUR) Index tracks the performance of the largest and most liquid listed companies active in exploration and/or mining of Lithium or the production of Lithium batteries. The index is calculated as a total return index in EUR and adjusted semi-annually.

This rarely cited index may get a big boost from the recently announced corporate events. Thus, the three truck industry giants, Cummins, Daimler and Paccar, are forming a multibillion-dollar joint venture to make batteries for commercial vehicles and other industrial applications at U.S. factories – the largest project of its kind in the northern U.S.

The two companies plan to invest $3 billion together and each take a 30% stake in the yet-to-be-named company, which will open in just over next 3 years. The plant will be expanded to produce 21 GWh of lithium iron phosphate (LFP) batteries per year, and its location has yet to be determined. Chinese battery maker EVE will share its lithium iron phosphate battery technology with the company and own a 10% stake.

While Ford (F) is reportedly investing $3.5 billion in a new Michigan plant that will produce LFP batteries and nickel-cobalt-manganese lithium-ion batteries, almost all of the other major North American battery factories announced in the past year have focused on lithium-ion batteries.

Each partner decides separately how to use the cells in its products. Rumsey said Cummins' Accelera will likely focus on buses and mid-size vehicles, as well as stationary energy storage usage. Daimler, maker of the Freightliner, Mercedes-Benz and Fuso brands, and Paccar, maker of Kenworth and Peterbilt semi-trailers, will use them for trucks. For scale, the new plant's 21GWh of output would produce enough battery material to power 80,000 medium-duty trucks or as many as 40,000 electric buses a year.