Chinese lithium battery maker Eve Energy will set up a joint venture in the US with a minority stake to expand into the North American commercial vehicle power battery market.

Eve Energy US Holding LLC, an affiliate of Eve Energy, plans to set up a joint venture in the US with Electrified Power, Daimler Truck, and Paccar Inc, and the joint venture will invest in the construction of battery production capacity.

The joint venture shareholders' capital contribution will be capped at a total of $2.64 billion, of which Eve Energy US, with a cash contribution capped at $150 million, will hold 10 percent of the joint venture's equity.

Electrified Power, Daimler Truck, and Paccar each have a cash contribution limit of $830 million and will each hold 30 percent of the joint venture.

The board of directors of the joint venture will consist of seven members, of which Eve Energy US will have the right to designate one and the partners will have the right to designate two each.

The joint venture will receive licenses from Eve Energy or its subsidiaries to develop, manufacture and commercialize the licensed products and pay licensing royalties as agreed, according to the announcement.

The batteries produced by the joint venture will be used primarily in the designated North American commercial vehicle segment, the announcement said.

According to the announcement, Eve Energy's partners will be the main customers of the joint venture and will purchase all or the vast majority of the products.