DETROIT, March 15, 2022 /PRNewswire/ — Trucking is a sector that is difficult to decarbonize, and forty percent of global road transportation emissions comes from trucking. The average carbon footprint per truck is 50 times higher compared to passenger vehicles, and as C02 taxes rise and bans on diesel trucks in urban areas continue, Berylls Strategy Advisors, a global management consulting firm fully focused on the automobility industry, has investigated the U.S. trucking market and today issued a Berylls Insights Report, “Zero-Emission Trucking in the U.S. – Will Batteries do the Job?”
The paper investigates the U.S. truck market, vehicle deployment, applications, and technologies to determine if battery electric trucks are the universal solution for decarbonization of the trucking sector.
While incumbent OEMs have been sluggish to introduce zero-emission trucks, investors are bullish about electrified commercial vehicles and funding for startups is readily available (the number of zero-emission truck models available in the U.S. jumped from 20 in 2019 to 145 today). While the number of products available coupled with government incentives impacts adaptation, vehicle range and annual mileage continue to be the main factors that determine the technical and economic feasibility of battery electric trucks compared to other powertrain technology for fleets.
All manufacturers have announced electric truck ranges between 150 and 200 miles, and according to the North American Council on Freight Efficiency (NACFE), 98 percent of Class 3 – 6 trucks do not travel more than 150 miles daily. Consequently, these lighter segments can be electrified more easily and without the need for public fast charging infrastructure. Class 3 promises the highest overall market volumes – between 300,000-350,000 annually.
Comparatively, the heavy-duty truck market is more volatile with a volume of 200,000-300,000 units annually. These vehicles require high payloads and range requirements, meaning heavier and more expensive batteries. One-hundred miles of extra vehicle range cost 2,500 lbs. of payload and an additional $20,000 for the battery, making the investment cost and payload penalty of a larger battery simply too high to justify the total cost of ownership.
“Our insight shows that battery electric trucks can be competitive, but not for all use cases,” said Martin French, Berylls U.S. managing director. “There will be a pluralism of powertrain solutions and any truck purchase will be preceded by carefully weighing the importance of technical fit as well as capital and operational expenditures.”
The paper takes an in-depth look at the following areas that fleets need to evaluate to determine the long-term feasibility and the value proposition from a carbon net-zero and business perspective.
- Model availability
- Lively competition between incumbents and startups
- Electrifying light-weight trucks vs. heavy-duty
- Complex system dynamics
- Regional haul vs long-haul feasibility
- Alternative low-carbon fuels
- Future Outlook
This is the third in a three-part series on operations excellence that Berylls has issued to address the biggest hurdles facing the automotive industry in 2022. To download “Zero-Emission Trucking in the U.S. – Will Batteries do the Job?”, click HERE or contact Berylls U.S. at [email protected]
ABOUT BERYLLS GROUP
The Berylls Group’s services are fully dedicated to the automotive industry. Our global experts understand the industry’s key challenges and are developing ways to achieve sustainable success in the automobility eco system. Our professionals, using innovative & digital strategies are networking across our four specialized units to offer our clients end-to-end support, from strategy development to implementation. For more information, visit https://www.berylls.com/en/.
The Berylls Quartet includes:
- Berylls Strategy Advisors – Our top management consultants’ expertise extends across the complete value chain of automobility – from long-term strategic planning to operational performance improvements. The team has broad experience in automotive thought leadership, profound industry knowledge, innovative problem-solving competence, and entrepreneurial thinking.
- Berylls Digital Ventures – The development of digital products and the implementation of new business models are increasingly required to drive the realization of our clients’ strategic concepts. The BDV team works with clients end-to-end, investing in promising startups and bringing digital, turn-key ready solutions to market.
- Berylls Mad Media – These experts develop and operate tailored solutions, including data-driven marketing, integrated service designs and IT architectures. We strengthen customer loyalty, market exploitation, and profitability – taking vehicles and services to market digitally.
- Berylls Equity Partners – A private investment company, supported by strong anchor investors and pursuing an entrepreneurial approach. We carefully select, acquire, and improve operationally companies with value potential in the mobility industry.
SOURCE Berylls Strategy Advisors
