The demand for electric vehicles currently outstrips the necessary electric battery production. But that could quickly change.
THE FUTURE OF TRANSPORTATION With auto companies spending $90 billion in electric vehicle focused research and development, the transition towards more EVs in supply chain presents challenges and opportunities. Peter Jones, Managing Director and Founder of Prological, discusses the current landscape of transportation and how it affects the Australian market.
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eter Jones, Managing Director and Founder of Prological, says electric, hybrid and hydrogen trucks can save a line-haul operator $200,000 every year per vehicle (based on 300,000kms/PA) in energy consumption alone. This is a bold and provocative statement, but data clearly shows the cost upside of replacing diesel with these more environmentally friendly options. The problem is benefits haven’t yet materialised. But much as the latest James Bond movie took a lot longer to land than we all expected, but did eventually turn up, so will sustainable energy options for freight and logistics.
ELECTRIC VEHICLES Peter says there’s one major problem stopping the uptake of electric vehicles. “The onset of electric powered vehicles in the supply chain is hampered by the world’s inability to produce enough batteries fast enough,” he says. “Electric car uptake is accelerating so quickly – which makes sense given it’s a popularity-winner for governments – so that’s where the mining, metals processing, and battery manufacturing resources are being steered to.” Since the first Toyota Prius was released around the world in 2000, commentary arose about what the world will do environmentally with all the used 44 | MHD MARCH 2022
batteries. Peter notes that the concerns implicit in such questions have become more quiet because batteries have lasted longer than initial predicted. Global battery manufacturers have also worked out how to recycle them. “Given the early batteries have lasted longer than expected, you’d imagine the batteries being developed today will last ever longer as technology progresses. Indeed, KIA has a seven-year warranty on its battery packs and Tesla an industry-leading eight years, at more than 70 per cent of its ‘when new’ design capability. “The demand is here for electric vehicles within supply chain, and businesses are beginning to prioritise access within their purchasing processes,” Peter says. “And yet as an Australian transport industry we’re a million miles away from being able to support that. Prological recently ran a tender for a $20 million freight task where environmental sustainability was a key criterion. We issued this to the Australian transport industry and didn’t receive anything accessible which would make a demonstrable difference to what the company is doing today – not even close.” Last November, PepsiCo CEO Ramon Laguarta surprised the electric vehicle community by announcing the imminent
delivery of the first Tesla Semi. “In 2017 Pepsi placed a reserve on 100 ‘Tractors’ (US English for ‘Prime Mover’), of which 15 were supposed to be delivered in Q4 of 2021. There have been delays. The tractors use the new 4680 battery cells, the current demand for which drastistically outstrips supply.” There’s a multitude of reasons for the adoption of electric trucks. Topping the list are the two key drivers: reductions in CO2 emissions and savings on energy costs. “Effectively, the consumable energy costs in an electric truck are around 25 per cent of those for an internal combustion engine,” Peter says. “Uptake will also help the smell and sound of our cities, so the case for Metropolitan distribution is absolutely there today. “Prological is currently designing a large warehouse with a self-sustaining energy (multi-technology) system which can support ten fully electric, metropolitan facing vehicles – as well as the facility – 24/7. That design criterion is reasonably straightforward to work with as is access to the technology to implement it. Commercially it also makes good sense. The difficulty will be getting access to the ten vehicles.” Electric rigid trucks have a strong case for implementation in metropolitan distribution but are less suited for longer
