Electric Truck Manufacturers Select Mississippi (!) For New Battery Factory

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Accelera, the the zero emissions division of Cummins, Daimler Vans & Buses US, and PACCAR, which manufactures mild, medium, and heavy obligation vehicles bought underneath the Kenworth, Peterbilt, and DAF  manufacturers, have chosen Marshall County, Mississippi, as the long run web site of superior battery cell manufacturing for his or her planned joint venture. In line with a press release, the three way partnership will localize battery cell manufacturing for business electrical automobiles and is anticipated to create greater than 2,000 manufacturing jobs in Mississippi. The preliminary capability of the manufacturing facility can be 21 GWh yearly with manufacturing scheduled to start in 2027. Output of the manufacturing facility might improve because the demand for battery powered vehicles grows.

The deliberate three way partnership is meant to create the size wanted to drive down the price of batteries for medium and heavy obligation business transportation. Accelera, Daimler Truck and PACCAR will every personal 30% of the three way partnership. They are going to collectively management the enterprise, which is able to deal with lithium iron phosphate battery know-how for business battery-electric vehicles. EVE Power, a Chinese language company, will function the know-how accomplice within the three way partnership with 10% possession and can contribute its industry-leading battery cell design and manufacturing experience to the long run cell manufacturing plant.

“This web site choice represents an thrilling and tangible step towards advancing our Vacation spot Zero technique and our imaginative and prescient to guide the {industry} towards a decarbonized future,” mentioned Jennifer Rumsey, CEO of Cummins. “We’re excited to affix the Marshall County neighborhood to drive financial progress and job creation in Mississippi, whereas persevering with to develop our robust partnerships and serve the varied wants of our prospects.”

“Localized battery cell manufacturing is a vital part of delivering our prospects — the fleets that maintain America and the world shifting — price efficient choices for decarbonizing their operations,” mentioned John O’Leary, CEO of Daimler Truck North America. “We’re grateful to the state of Mississippi and the Marshall County neighborhood for becoming a member of us in attaining this purpose and serving to to understand our shared local weather targets.”

“The state, the communities and the folks of Mississippi are fantastic enterprise companions for PACCAR. We sit up for increasing that partnership in northern Mississippi with this new battery cell manufacturing facility that can present industry-leading price efficient zero-emissions options for our prospects,” mentioned Preston Feight, CEO of PACCAR.

$2 Billion Manufacturing unit Will get Mississippi Incentives

To get the deal accomplished, Mississippi governor Tate Reeves referred to as a particular legislative session to get approval for the practically $350 million in tax breaks and incentives wanted to tug the deal collectively. $186.7 million of that cash goes on to the businesses for so-called “contained in the fence” reimbursements, building, coaching, and state company expediting funds. Mississippi can also be committing to 10 years of 100% company revenue tax exemptions, gross sales and use tax exemptions for added building as much as one 12 months after the location is developed, public infrastructure, and entry roads.

In line with SuperTalk Mississippi, Reeves advised the legislature. “It would additional enshrine Mississippi as a nationwide chief within the automotive {industry}. This deal is additional proof of the great issues which can be occurring in our state. The momentum we’re experiencing in the mean time is unprecedented. Mississippi is attracting new jobs, and our economic system is rising stronger day by day. In the present day’s announcement additional cements that.”

Mississippi governor
Credit score: Workplace of the governor of Mississippi

Which may be so, however Mississippi is the poorest state in the US with a poverty charge of 19.8 p.c. All these manufacturing jobs the governor and the legislature are bragging about could also be enriching CEOs and politicians however they aren’t doing a lot for the folks of Mississippi. As soon as once more, main companies are flocking to low wage states the place they will extract essentially the most quantity of labor at on the lowest potential price.

One can solely marvel what these CEOs of Accelera, Daimler Truck, and PACCAE must say in the event that they knew (or cared) that the monetary largess they’re getting from the state comes partially on the backs of poor kids. Simply earlier than that particular legislative session, a really nicely fed Tate Reeves, whose jowls hold over the collar of his shirt, introduced that Mississippi has determined to withdraw from a federal meals program that will pay about $10 per week to hungry kids throughout the summer season break from faculty when there is no such thing as a faculty lunch program accessible to them.

Reeves justified his resolution by saying he was preventing again towards the enlargement of the “welfare state,” a Republican mantra for the reason that days of Ronald Reagan when myths about folks on welfare driving Cadillacs first surfaced. Such disdain for poor folks — particularly those that made the error of being born with black or brown pores and skin — evokes a thought by Martin Luther King, Jr. who noticed,

 All of us too typically have socialism for the wealthy and rugged free market capitalism for the poor. 

CEOs With No Conscience

One wonders how Jennifer Rumsey, John O’Leary, and Preston Feight clarify to their kids that the companies they handle will keep away from paying taxes in Mississippi for the following ten years whereas kids in Mississippi starve. They have to be very pleased with themselves, as they’re now the brand new masters of the plantation in a state that has by no means deserted is white supremacist roots. No marvel Nina Simone felt compelled to jot down and sing her well-known indictment of the state — Mississippi Goddam.

The Guardian stories the backlash towards Reeves resolution has been swift and extreme. Nikole Hannah-Jones, a scholar and creator of the 1619 Project, was one of many first to criticize Reeves. “The cruelty of being the poorest state in America and selecting — selecting — to show down federal help for poor kids to eat,” she mentioned in a publish on X.

Keith Boykin, writer and co-founder of the Nationwide Black Justice Coalition, mentioned funds earmarked for welfare in Mississippi have beforehand gone to superfluous aims, together with the construction of a sports stadium. “Mississippi gave thousands and thousands of {dollars} of welfare funds to former NFL quarterback Brett Favre to construct a volleyball facility for his daughter’s faculty, however they gained’t take federal funds to feed hungry kids. As a result of serving to poor children is the sort of welfare that Republicans hate,” Boykin mentioned on X.

The Takeaway

Firms have an obligation and obligation to counterpoint the communities wherein they do enterprise. No much less a personage than Andrew Carnegie mentioned, “Surplus wealth is a sacred belief which its possessor is certain to manage in his lifetime for the great of the neighborhood.” To some it might appear Accelera, Daimler, and PACCAR are exploiting their chosen neighborhood moderately than benefiting it. Having a conscience is just not a requirement for being a CEO, apparently.

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