Creating the truck of tomorrow

Light commercial vehicles (LCVs) make up a small proportion of Australia’s vehicle fleet and heavy vehicles (HVs) account for only a fraction of total road traffic.

Despite that, the road freight sector is responsible for over 80% of freight-related CO₂ emissions and roughly one-third of Australia’s total transport emissions — around 36 million tonnes annually¹. With freight volume predicted to increase by 77% by 2050², electrifying this sector is key to achieving the country’s climate targets.

Electrifying this sector, however, is not straightforward. Unlike passenger electric vehicles (EVs), commercial vehicles operate across a wide spectrum of applications, from long-haul freight to dense urban deliveries, each with unique demands on range, payload and operational efficiency. While adoption is uneven, certain niches are surging ahead, such as city buses, short-range delivery trucks and specialised fleets, demonstrating the practical and economic viability of electrification today.

This article explores the evolving landscape of commercial vehicle electrification, highlighting the technological hurdles OEMs face, the innovative solutions that are emerging, and the broader shifts in last-mile logistics that are redefining how goods move in cities and across regions.

Challenges for commercial EV OEMs in Australia

While passenger EV adoption continues to rise steadily, the electrification of commercial fleets faces a distinct set of challenges. Freight vehicles operate across a broad spectrum of applications, from urban deliveries to long-haul interstate transport, each with specific requirements for payload, range and operational efficiency. In Australia, there are currently fewer than 3500 public charging stations, with only around 470 classified as fast chargers.³ This sparse infrastructure poses a major obstacle for commercial operators relying on high-utilisation routes and is largely inadequate for larger heavy vehicles.

Weight and payload considerations

HVs must balance vehicle weight with payload capacity, and adding large battery packs can complicate this calculation. Unlike light passenger EVs, where battery weight has a smaller operational impact, heavy-duty trucks risk reduced cargo capacity if batteries are oversized.

Optimising vehicle design to ensure adequate range without compromising payload is critical, particularly for refrigerated freight or long-haul operations where both energy density and battery management play a pivotal role.

Infrastructure and network planning

The Australian Renewable Energy Agency (ARENA) commissioned engineering consultancy AECOM to assess the infrastructure requirements for electrifying road freight. Their report provides a clear roadmap for what will be needed to support electric freight operations, outlining a potential network of up to 165 dedicated charging hubs⁴ along intrastate and interstate routes — a ‘first-of-its-kind’ national overview.

While this initial assessment identifies key locations and capacities, the study notes that further localisation will be required to match fleet operations, route patterns and regional energy availability. Expanding high-capacity charging along freight corridors will be essential to ensure reliable, efficient operation of battery-electric trucks across the country.

Cost and total cost of ownership

While upfront costs for electric trucks remain higher than conventional diesel equivalents, commercial operators are increasingly evaluating the total cost of ownership (TCO), factoring in lower fuel costs, reduced maintenance and potential government incentives.

While early-stage infrastructure development and higher capital outlays are offset over time by operational efficiencies, these benefits are contingent on the availability and reliability of charging networks — an area where Australia’s system is still maturing.

Regulatory and operational hurdles

Fleet operators also contend with regulatory requirements, including vehicle weight limits, road access restrictions and driver rest periods, which influence charging schedules and route planning. Aligning fleet operations with these regulations while integrating charging strategies adds a further layer of complexity for OEMs and logistics managers alike.

In summary, commercial EV adoption in Australia faces a multi-dimensional challenge: technological, infrastructural and regulatory, and overcoming these barriers requires collaboration between OEMs, government agencies and infrastructure providers.

Solutions and recommendations

As Australia’s freight sector moves towards electrification, developing the ‘Truck of Tomorrow’ represents a critical challenge. Among the most pressing obstacles is managing vehicle range across the country’s vast distances. However, a coordinated approach combining technological innovation, infrastructure expansion and supply chain resilience can make electric freight operations viable.

Technological solutions to extend range

Extending the operational range of next-generation trucks relies on a combination of advanced battery and drivetrain technologies. Maximising battery utilisation and improving drivetrain efficiency can significantly reduce energy consumption, while emerging high-energy-density solutions, such as solid-state batteries, offer potential for larger-scale implementation. For example, small-scale innovations like the TDK CeraCharge Rechargeable Solid-State SMD Battery (Figure 2) showcase the potential of solid-state batteries, albeit at a much smaller scale!

Figure 2: The CeraCharge rechargeable solid-state SMD battery, developed by TDK. Image courtesy of Mouser Electronics.

High-voltage battery architectures, such as 800 V systems, can significantly accelerate charging times. At these elevated voltages, advanced silicon carbide (SiC) devices, including onsemi’s NXH80B120MNQ0 SiC MOSFETs, are required to replace conventional silicon components, reducing switching losses while supporting the higher breakdown voltages necessary for heavy-duty trucks.

Hydrogen fuel cells also offer a promising solution for extending range on long-haul routes. Additionally, battery-swapping technology can provide a flexible alternative to conventional charging, minimising downtime and supporting high-utilisation freight operations.

Infrastructure development strategies

Establishing a strong and reliable charging and refuelling network is crucial to enable the widespread adoption of electric trucks across Australia. This involves deploying high-powered charging stations along key freight corridors and, where suitable, integrating battery-swapping hubs to reduce downtime.

Equally important is the rollout of hydrogen refuelling stations and truck stops powered by renewable energy with localised generation, ensuring even remote and off-grid routes are accessible. By taking a strategic, coordinated approach to infrastructure development, stakeholders can address range limitations and support the seamless, continuous operation of electric freight vehicles nationwide.

Reinforcing the supply chain

A resilient and adaptable supply chain is also vital for the successful deployment of Australia’s electric freight network. This involves securing access to advanced battery packs, hydrogen fuel cells and supporting technologies, while also developing local maintenance and service capabilities.

Collaborative partnerships between government agencies, OEMs, logistics operators and energy providers must help mitigate risks, streamline technology deployment and support the broader adoption of innovative freight solutions.

Further evolution

The electrification of commercial vehicles is following a trajectory similar to that of passenger vehicles, yet new opportunities are emerging through advances in intelligent automotive sensing and control systems. These technologies are set to transform the way goods are transported and distributed, from long-haul freight to urban deliveries.

Autonomous trucks

Companies such as Sweden’s Einride are pioneering electric autonomous trucks capable of fully self-driving operation over long distances. In more complex environments, such as loading docks or congested urban areas, human operators can take remote control to ensure safe manoeuvring (Figure 3).

Figure 3: Einride’s Gen 2 autonomous truck. Image credit: iStock.com/Scharfsinn86

This human-backed autonomous technology helps offset the higher upfront cost of electric trucks by lowering the total cost of ownership (TCO). In comparison with conventional diesel operations, Einride reports an average reduction of up to 95% in greenhouse gas emissions.⁵

Last-mile deliveries

For many Australians working from home, the sight or sound of a delivery van or truck passing by the front door has become a daily routine. With e-commerce continuing to surge, rethinking last-mile logistics, particularly in dense urban environments, is critical to reducing congestion, emissions and operational costs.

Autonomous delivery robots

One promising solution is autonomous delivery robots, such as Starship’s platform, which has now completed over five million deliveries globally. These compact, electric-powered robots rely on 12 onboard cameras and GNSS tracking to navigate urban streets at a speed of around 6.5 km/h.

Because of their low-speed electric drivetrains, these robots can safely travel along footpaths and cycleways, following more direct routes than vehicles constrained by roads. This makes them particularly suited to Australia’s inner-city environments, where traffic congestion and narrow streets can slow conventional delivery vehicles.

Drone deliveries

In addition to ground-based options, delivery drones offer another avenue for efficient last-mile transport. By flying above road networks, drones can take more direct routes than conventional vans, bypassing congestion entirely.

In Australia, the Civil Aviation Safety Authority (CASA) is in the process of approving drone delivery trials in remote and regional areas, where traditional road access is slower or less reliable.⁶ These trials aim to provide faster delivery to communities across challenging terrain while reducing emissions from diesel-powered logistics vehicles.

Conclusion

The transition to electric haulage and delivery vehicles represents a pivotal moment for sustainable innovation in commercial transport. While passenger EV developments provide valuable lessons, commercial vehicles bring unique operational challenges that demand tailored solutions. Success will rely on a combination of advanced battery and fuel cell technologies, high-capacity charging and refuelling infrastructure, and business models that make electrification practical and cost-effective.

Across Australia, initiatives such as autonomous truck trials, drone deliveries and battery-swapping hubs illustrate the diverse strategies needed to enable reliable, zero-emissions logistics. Achieving a fully electrified commercial fleet will require collaboration among manufacturers, fleet operators, infrastructure providers and policymakers to ensure a smooth, scalable transition.

_{1. https://arena.gov.au/assets/2025/07/AECOM-%E2%80%93-Electrifying-Road-Freight-Report.pdf}

_{2. https://arena.gov.au/assets/2025/07/AECOM-%E2%80%93-Electrifying-Road-Freight-Report.pdf}

_{3. https://www.infrastructureaustralia.gov.au/ipl/national-highway-electric-vehicle-fast-charging}

_{4. https://arena.gov.au/assets/2025/07/AECOM-%E2%80%93-Electrifying-Road-Freight-Report.pdf}

_{5. https://einride.tech/}

_{6. https://www.drones.gov.au/benefits-and-use-cases-drones/drone-deliveries}

Top image credit: iStock.com/MikeMareen