Bosch Group said it will invest more than $200 million to produce fuel cell stacks in the U.S. as the German supplier accelerates its transition to electrification.
Bosch said on Wednesday that it will expand its existing Anderson facility, South Carolina, to support fuel cell production, which is planned to start in 2026 creating at least 350 new jobs.
The fuel cell stacks produced in the facility will drive hydrogen-powered, heavy-duty trucks coming to U.S. roads in the next few years, the company said.
The move comes as the U.S. Environment Protection Agency proposes to cut nitrogen oxide emissions from heavy trucks of 47 percent to 60 percent by 2045, which will force the industry to adopt hybrid and electric powertrains.
A fuel-cell power module is a system that generates electricity from hydrogen in vehicles and is essentially used in commercial vehicles.
Last year, Bosch signed a deal with electric truck maker Nikola to build Bosch fuel-cell power modules.
Bosch ranks No. 1 on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of $49.1 billion in 2021.