For Mack Trucks, the Future of 18-Wheeled Big Rigs is Electric
Mack Trucks, a renowned manufacturer of 18-wheelers, is taking a bold step into the future of transportation with its electric vehicle (EV) lineup. Headquartered in Greensboro, North Carolina, Mack is part of Sweden’s Volvo Group and has seen a significant increase in orders for its battery-electric vehicles (BEVs). Mack’s adoption rate of EVs may be slow but steady, with various cities across the United States testing the technology.
The EV market is not exclusive to Mack Trucks. Virtually every automotive manufacturer, big and small, is producing fully electric models, plug-in hybrids, and gas-electric hybrids. This shift is in line with the global commitment to reduce greenhouse gas emissions and address climate change. The transportation sector, which accounts for a significant portion of emissions, is a prime focus for transitioning to zero-emissions vehicles.
The Multibillion-Dollar Question about EV Adoption
While EV technology has proven to be viable and continues to gain traction, the question remains: when will customers fully embrace EVs as the industry moves away from internal-combustion engines? Last year, U.S. consumers purchased a record 1.2 million EVs, representing a year-over-year growth of 46%. However, the pace of growth has slowed, with sales increasing by 40% in the fourth quarter compared to 49% in the third quarter. Despite this, the EV market in the U.S. is still growing, albeit at a slightly slower rate.
Auto manufacturers have been implementing various strategies to spur demand, such as cutting prices on EVs, adjusting production targets, and expressing skepticism about aggressive timelines for the EV transition. However, the commercial market has shown a more consistent interest in EV adoption. Electric truck deployments have increased significantly in recent years, indicating a growing demand for medium- and heavy-duty electric trucks. While the number of EVs sold within this category is not specified, the overall sales of medium- and heavy-duty trucks have seen a 7.6% increase from the previous year.
Considerations for Commercial Adoption of EVs
The decision to adopt EVs in the commercial sector differs from that of consumers. Commercial buyers focus on the total cost of ownership (TCO), considering factors such as aftermarket spare parts, maintenance, drivers’ wages, fuel consumption, and insurance. While EVs offer lower operating costs, the upfront investment required is still comparatively higher than that of traditional internal-combustion engine (ICE) models. Fleet owners and operators need to evaluate how quickly an EV’s lower operating costs will offset the initial investment.
Two critical factors in the TCO equation are battery technology and charging infrastructure. Lowering the cost of batteries and improving their energy capacity are ongoing research and development priorities for truck manufacturers. The industry anticipates that batteries will become more energy-dense and cost-effective in the coming years, eventually reaching a break-even point where it makes fully economical sense to switch to EVs. A study suggests that by 2030, the TCO of battery-electric long-haul trucks will likely be lower than that of their diesel counterparts.
Mack Trucks is also focused on improving battery technology. Its parent company, Volvo Group, plans to build a large-scale battery factory in Sweden, which will contribute to the production of cost-effective batteries. Additionally, Volvo Group recently acquired Proterra, a U.S. battery and electric bus manufacturer, and is investing in charging infrastructure.
Building a Nationwide Charging Infrastructure
Just like the consumer EV market, the trucking industry is faced with the challenge of developing an adequate and reliable nationwide battery charging infrastructure. Startups and industry leaders are working to build charging stations across the country, and a coalition has been formed to promote charging infrastructure. The U.S. government’s initiatives, such as the National Electric Vehicle Infrastructure Formula Program, provide funding for expanding the charging network. These efforts aim to make long-distance EV transportation more cost-effective, especially for heavy-duty semis that travel long distances.
While long-distance EV transportation is still a work in progress, short-distance routes are more viable. Commercial vehicles operating on a single shift, driving less than 100 miles a day and returning to a local hub for charging, are ideal for electric vehicles. Major companies like Amazon, Walmart, FedEx, UPS, and private shippers are electrifying their fleets for short-haul routes. Moreover, marine ports and terminals are witnessing an increase in electric vehicles used for transporting shipping containers to local destinations.
Mack Trucks has taken these factors into consideration when developing its EV lineup. The Mack MD Electric (MDe) is designed for light loads, urban environments, and returns to a depot every night. The company’s nearly 420 dealers are vital in driving adoption, with around 80 dealers becoming EV-certified. Mack supports its dealers and addresses customer concerns by offering fleet management programs and leasing options, making EV adoption more accessible.
As Mack Trucks continues to expand its EV portfolio and develop a nationwide charging infrastructure, the day when every Mack truck has an electric powertrain is on the horizon. The future of 18-wheeled big rigs is indeed electric.