{"id":2504,"date":"2020-09-17T00:53:11","date_gmt":"2020-09-17T00:53:11","guid":{"rendered":"https:\/\/quicktransportsolutions.com\/blog\/?p=2504"},"modified":"2020-09-17T00:53:13","modified_gmt":"2020-09-17T00:53:13","slug":"california-pushes-the-industry-to-go-all-electric-2","status":"publish","type":"post","link":"https:\/\/quicktransportsolutions.com\/blog\/california-pushes-the-industry-to-go-all-electric-2\/","title":{"rendered":"California Pushes the Industry to go All-Electric"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Have you heard? California recently shook up the auto and transportation sectors when they mandated that all vans and trucks must be electric within the next <em>four years<\/em>. These guidelines are a first-of-their-kind in any state. Regulators have essentially mandated that diesel commercial trucks and vans must be moved to batteries or hydrogen fuel cells by 2024.<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">                     <\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">     <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even more, the new rules were written very broadly to cover\na wide range of truck segments, whether it be medium-duty urban models or Class\n8 heavy duty trucks. And even though California has been waging a long battle\nwith the Trump Administration on reigning in emissions, California holds big\nsway across the industry as a whole. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many consider this move to be a boon to companies like\nNikola Motors and Tesla, both of which are working on electric heavy-duty big\nrigs and hydrogen-powered commercial motor vehicles. Other companies, such as\nDetroit-based Rivian, have already been contracted to produce hundreds of\nthousands of vehicles for companies like Amazon. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The surge in interest is coming from a combination of market\ndemand, policies and economics as per kilowatt hour battery technology drops in\nprice. Additionally, big companies such as Amazon, IKEA, UPS and FedEx are either\nmaking big purchases or preparing to, setting up EV truck OEMs for success. But\ncities across the United States are also buying EVs, including electric transit\nbuses, garbage trucks and pickup trucks. The trend is obvious. So, what\u2019s going\non in California?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What Are the Details?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under the guidelines put forth by the <a href=\"https:\/\/ww2.arb.ca.gov\/homepage\">California Air Resources Board (CARB),<\/a>\na minimum of 40% of the big rigs sold in California will have to be powered by\nzero-emissions technologies by 2024. For medium-duty trucks, such as utility\npick up trucks, over 55 percent of their sales must be zero-emission by 2035.\nFor common delivery trucks and vans used for urban delivery, 75 percent of\ndealer sales must be zero-emissions by 2035. California has also mandated that\n100% of Californian government fleets and last-mile delivery trucks will need\nto meet these targets by 2035. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During the hearings to debate the new regulations, CARB\nheard from clean air advocates and industry officials. Not surprisingly, there\nwere a lot of strong feelings on the matter. Clean air advocates say that these\nkinds of regulations are necessary to address broader global warming concerns. On\nthe other side, industry advocates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many industry officials feel the numbers CARB is shooting\nfor just aren&#8217;t realistic, based on factors like the rate at which consumers\nhave adopted electric vehicles\u2014which is far, far below the rate they\u2019ll need to\nmeet another CARB goal of 5 million electric consumer vehicles by 2030. The\nmain problem with this has been consumer and business anxiety regarding\ncharging options, though these concerns will change. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Truck and Engine Manufacturer\u2019s Association (TEMA), came\nout strongly against the measure. Specifically, TEMA argues that hydrogen and\nelectric trucks are problematic because they are far more expensive than\ntraditional internal-combustion tractor trailers. They are also concerned about\na lack of charging infrastructure to support the regulation. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While there are companies out there working on their own\ncharging networks, they are expensive to produce and there is a lot of\nlead-time involved with getting charging networks up and running. Still, there\nare plenty of companies working on building out their own charging networks. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One example of this is a Volkswagen subsidiary called\nElectrify America, which has been hard at work completing a cross-country\nnetwork of charging stations. Their current project includes a network spanning\nnearly 2,700 miles and running through 11 states. And they aren\u2019t the only\nones. Other companies, such as ChargePoint and EVGo are also getting ready for\ntheir own charging network launches. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Big truck OEMs have begun to see the writing on the wall. Whether they want to be part of an electric future or not, circumstances are dragging them in that direction. With companies like Nikola Motors lapping at their heels, the big auto makers are taking notice. Consider that Nikola Motors now has a larger market capitalization than Ford and they have yet to deliver a single vehicle. <\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">                          <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In fact, some of the big automakers are themselves investing\nin companies moving into the electric space. Ford, for instance, along with\nAmazon and others, has invested in Rivian. General Motors, meanwhile, has\nannounced plans to build electric delivery vans and is already prepping an\nall-electric hummer for a 2021 debut. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Electric Truck Wars Heat Up<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As we have reported on many times before, from Daimler AG to\nKenworth, heavy duty truck manufacturers are repeatedly getting in on the\nelectric truck game. With so much at stake, it would be a missed business\nopportunity should they sit out the new dominant trend in truck manufacturing.\nWhen it comes to the future of trucks, if California has anything to say about\nit, it may be all-electric. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All of this comes against the backdrop of an increasingly\ncompetitive electric truck market. Consider that trucks are as American as hot\napple pie on your grandmother\u2019s windowsill, yet the market has changed. We are\nnow in a new age with Ford already stating they are going to launch an\nall-electric F-150 pickup truck sometime in 2022. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tesla is also exploding with growth, with their stock price\nnow well-above $1,000 per share. And because their competitor, Nikola Motors,\nis getting ready to move to market with their electric semi, Tesla is now going\nall-out to ensure they are not left behind. These efforts are reflected by the\nfact that they are close to becoming the most valuable car company in the\nworld. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lots of big investors are betting on a future full of\nelectric trucks. Just as Tesla has seen its stock soar, Nikola Motors is also\non a tear. Since it went public in early May, the company has shot up to a\nvaluation of over $3.3 billion. That makes Nikola Motors nearly as valuable as\nFiat Chrysler and they have not yet sold a single vehicle. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The difference is that Nikola Motors is working on a\nhydrogen fuel cell electric semi. Meanwhile, Tesla has bet the bank on\nLithium-Ion batteries, and they have been hard at work innovating in the space.\nOther companies making waves in the electric truck space include Bollinger,\nAtlis, and Lordstown Motors. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Electric Powertrains Go Mainstream<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Of course, the heart of any big rig is <a href=\"https:\/\/quicktransportsolutions.com\/blog\/how-will-electric-trucks-be-powered\/\">its\npowertrain<\/a>, and beyond big OEMs getting in on the electric game, powertrain\nmanufacturers are as well. There are lots of new entrants into the field\nworking on going all-electric. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One example is a company called Hyliion Inc. They are\nlooking to make their own mark in the Class 8 electrified market through the\nlaunch of their Hypertruck Electric Range Extender (ERX), a long-haul, fully\nelectric powertrain, with an order from logistics company Agility for 1,000\ntrucks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The difference is that Hyliion still counts on natural\ngas-powered generator to assist with battery charging. With the combination of\na fully electric drivetrain and a natural gas-powered onboard generator to recharge\nthe battery, the Hypertruck ERX boasts more than 1,000 miles of range. The\npowertrain also produces electricity locally at roughly 30% less than the\naverage grid cost, yielding a seven-year cost-of-ownership.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Powertrains like these serve multiple purposes. Not only do they help trucking companies meet their sustainability goals, but they save money, keep customers happy and provide additional shareholder benefit. They also keep trucking companies at the cutting edge of what\u2019s new. <\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">                          <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Range anxiety may be a thing of the past for most consumer\nelectric vehicles, but for truckers, 500 miles just isn&#8217;t enough to make a dent\nin the longest hauls. That said, by the time CARB\u2019s new regulations come to\nfruition in 2030, we could have a new electric battery that can squeeze out\nthat extra juice. But even if we don\u2019t, the U.S. should have a sufficient\ncharging infrastructure by then to support long haul electric truck drivers. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you heard? California recently shook up the auto and transportation sectors when they mandated that all vans and trucks must be electric within the next four years. These guidelines are a first-of-their-kind in any state. Regulators have essentially mandated that diesel commercial trucks and vans must be moved to batteries or hydrogen fuel cells &#8230; <a title=\"California Pushes the Industry to go All-Electric\" class=\"read-more\" href=\"https:\/\/quicktransportsolutions.com\/blog\/california-pushes-the-industry-to-go-all-electric-2\/\" aria-label=\"Read more about California Pushes the Industry to go All-Electric\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":2207,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trucking"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>California Pushes the Industry to go All-Electric - Quick Transport Solutions Trucking Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/quicktransportsolutions.com\/blog\/california-pushes-the-industry-to-go-all-electric-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California Pushes the Industry to go All-Electric - Quick Transport Solutions Trucking Blog\" \/>\n<meta property=\"og:description\" content=\"Have you heard? California recently shook up the auto and transportation sectors when they mandated that all vans and trucks must be electric within the next four years. These guidelines are a first-of-their-kind in any state. Regulators have essentially mandated that diesel commercial trucks and vans must be moved to batteries or hydrogen fuel cells ... 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California recently shook up the auto and transportation sectors when they mandated that all vans and trucks must be electric within the next four years. These guidelines are a first-of-their-kind in any state. Regulators have essentially mandated that diesel commercial trucks and vans must be moved to batteries or hydrogen fuel cells ... 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