Cummins (CMI) Secures $75M Grant to Transform Indiana Facility

Group 1: Investment and Expansion - Cummins Inc. will invest an additional $75 million, matching a grant from the Department of Energy, totaling $150 million to enhance production of battery packs and other components for its zero-emissions division, Accelera by Cummins [1][12] - The expansion is expected to create approximately 250 full-time jobs, allowing existing employees to transition into these new roles over time [1] Group 2: Financial Performance and Projections - The Accelera segment has faced increasing R&D and engineering expenses, resulting in operating losses of $223 million in 2021, $334 million in 2022, and $443 million in 2023, with expectations of losses between $400 million and $430 million in 2024 [2] - Accelera is projected to achieve break-even by 2027, supported by its extensive technology portfolio and strong relationships with OEMs and end customers [9] Group 3: Environmental Impact - The Columbus Engine Plant (CEP) will allocate around half of its 1.42 million-square-foot facility to zero-emissions manufacturing, with electric powertrains projected to reduce carbon dioxide emissions by approximately 104 million metric tons by 2030 [7] Group 4: Strategic Vision - Cummins is committed to a zero-emissions future through its Destination Zero strategy, offering diverse solutions including fuel-agnostic engine platforms and fully electric and hydrogen fuel cell solutions [13] - The DOE grant is viewed as a significant milestone in enhancing battery production in the U.S. and reinforcing Cummins' global leadership in electrified solutions for commercial markets [4]