Daimler Trucks & Buses said it was investing in US company Proterra.
California based Proterra was founded in 2004 and is said to be a leader in making electric buses for local transport.
Go deeper with GlobalData
The two companies will consider electrification of Daimler heavy duty vehicles, starting with electrifying school buses from Daimler's Thomas Built Buses division for sale in North America.
The pair said school buses are ideal for electrification as they travel a predictable distance per day well within the capability of Proterra's EV equipment.
Daimler said in a statement: "We expect the cooperation with Proterra to deliver additional impetus for the development of heavy-duty commercial vehicles with electric drive."
We started working on electric trucks and buses at a very early stage and we aim to set the standards here in each relevant segment. In this way, we are broadening our scope in particular concerning the key technology of the battery – also with regard to North America."
