Working toward net zero carbon emissions, the U.S. has set an aggressive goal of phasing out gas-powered vehicles for electric vehicles (EVs) that run on electric motors rather than internal combustion engines (ICE). While this initiative certainly has positive environmental impacts, it may be a bumpy ride to get there.
Below, we’ll address some of the challenges the logistics industry may face when it comes to the adoption of EVs and how they might impact the supply chain.
Lithium Battery Shortages
The battery is a main component in the production of EVs, but it’s also the hardest to get your hands on. For starters, the production of these batteries requires raw materials, like cobalt, nickel, and lithium, which could become scarce. For example, some predictions report the global supply of lithium could run out as early as 2025.
On top of that, currently, there are a few key players (China, Japan, and Korea) dominating the EV battery market, which could jeopardize U.S. access to these batteries. In fact, the battery crisis has gotten so bad that prices are surging, and some experts are saying that 90 to 95% of the battery supply chain simply doesn’t exist. Given the circumstances, the U.S. may need to focus more heavily on investing in domestic battery production to avoid further shortages and price hikes that strain the supply chain.
Long Charge Times; Short Charges
Because EVs run on electricity, they need regular charging. Unfortunately, we’re not talking 20 minutes here and there—electric trucks can require six to eight hours of charge time, grounding them for that duration, for a charge that only gets them around six to seven hours or 400 miles at a time. On the other hand, if we look at diesel–powered LTL trucks, it only takes roughly 30 minutes to fill up their tanks, providing them with enough fuel to last 22 hours or 1,500 miles at a time.
Due to these charging limitations, electric trucks won’t be able to cover as much ground in a single day, which could lead to major delays and bottlenecks in the supply chain. Until EVs can provide a longer charge with a shorter charging period, they’re better suited for shorter stints like last-mile deliveries.
Limited Charging Infrastructures
Another limitation regarding the need to recharge these EVs is that there aren’t enough charging stations to accommodate the trucks on the road. While the Bipartisan Infrastructure Law (BIL) has the goal of building 500,000 public charging stations in the U.S. by 2030, predictions suggest the country would actually need 1.2 million to accommodate the number of EVs on the road. A shortage of charging stations could negatively impact the supply chain, delaying shipments as truckers reroute to find the closest chargers.
There no doubt will be some trials and tribulations associated with the net zero carbon emission goals, but over time, the adoption of EVs is expected to have a positive impact on the environment and logistics industry, from lowering our carbon footprint and reducing operating costs to improving efficiencies and more.
