According to www.ttnews.com, Amplify Cell Technologies’ battery cell manufacturing joint venture in Byhalia, Miss., has announced further delays, pushing its scheduled start of production (SOP) to 2028 — a one-year deferral from the previously revised date. The project, originally targeting SOP in 2027, had already been delayed once before October 2025, when Paccar Inc. publicly confirmed the shift to 2028 amid weakening market conditions.
Daimler Truck Takes $235 Million Impairment Charge
Daimler Truck AG will record a €200 million ($235 million) impairment charge in Q1 2026 earnings tied directly to the Amplify Cell project’s setbacks. CEO Karin Radstrom disclosed the charge during the company’s first-quarter 2026 earnings call on May 6, 2026. She attributed the decision to “weaker-than-expected conditions in the battery and fuel cell electric commercial vehicle market in North America.” The charge reflects revised capital allocation plans and deferred installation of manufacturing capacity across the joint venture.
Joint Venture Structure and Site Selection
The Amplify Cell JV comprises three major stakeholders: Daimler Truck AG (parent of Freightliner and Western Star), Paccar Inc. (owner of Kenworth and Peterbilt), and Cummins’ Accelera division. The partners announced the formation of the JV in September 2023 and selected the Byhalia, Mississippi site in January 2024 after evaluating 116 site submissions across 24 states. Six states made the long list; three advanced to the short list. Groundbreaking occurred in May 2024, and construction on the 2.6 million-square-foot facility began two months later, in July 2024.
Capital Commitments and Cost Estimates
Amplify Cell expects total capital expenditure for the factory to range between $2 billion and $3 billion. Daimler Truck had originally budgeted a sum in the “low triple-digit-million range” for 2026 alone — indicating an expected outlay of at least $300 million that year. However, with capacity installation now deferred, that figure will be significantly reduced. Limited construction continues at the site to preserve flexibility and maintain readiness for future market recovery.
Market Context and Supply Chain Implications
The delay reflects broader headwinds facing North American EV truck adoption: declining government infrastructure support, a freight recession constraining fleet capital expenditures, and slower-than-anticipated battery-electric truck deployment. According to industry data from ACT Research, Class 8 battery-electric truck orders in the U.S. totaled just 1,240 units in 2025, down 18% year-over-year — far below original projections. Meanwhile, Cummins reported 23% year-over-year growth in Accelera segment revenue in Q1 2026, but noted that most gains came from stationary power and components, not heavy-duty battery systems. For supply chain professionals, the Amplify delay underscores heightened risk in nearshoring battery cell production: long lead times, volatile demand signals, and capital intensity mean even well-resourced JVs must recalibrate timelines based on real-world fleet procurement patterns — not policy targets or OEM roadmaps.
Source: Transport Topics
Compiled from international media by the SCI.AI editorial team.
