According to the EPA, heavy duty commercial vehicles account for around 25% of transportation emissions in the US and there is a concerted effort to de-carbonize this sector. Electric vehicles (EVs) will play an important role in achieving these goals.
With the rapid commercialization of EVs over the last decade and significant advancements in battery technology, commercial vehicle electrification is becoming increasingly feasible for many businesses. Though long-range trucking still has some challenges related to broad charging infrastructure, all major manufacturers seem confident in its expansion and are rolling out EV options for applications up to class 8 with an even wider range of choices in lighter duty segment.
When it comes to the short-range logistics of local delivery and service businesses, EV vans could be an excellent option. Not only do EVs lower a company’s scope 1 emissions they can provide an umber of other economic benefits such as:
-Reduced maintenance costs without the need of regular lubrication service and the simplified mechanical components of EVs
-Lower operating costs since the typical cost per mile driven running power from commercial utility rates is typically much lower than gasoline or diesel fuel.
-Convenience and saving on re-fueling time with on-site, overnight charging.
-Increased performance from the higher torque and linear acceleration of electric drive-trains.
-Improved driver experience from the quiet and smooth operation EVs are famous for.
Though many commercial EVs still come at a premium cost compared to their internal combustion counterparts and initial investments may be required to support on-site charging, there are incentives available to subsidize these investments and prices are falling with scale. At the low end of the price spectrum is the Ford Motor Company Transit starting with an MSRP of less than $50k and a number of startups like Canoo promise even more options in the next few years.
Amazon has committed to putting 100,000 Rivian-built EV delivery vans on the road in the coming years with 20,000 already in service, setting a trend and demonstrating that this transition is possible even at scale.
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