Volvo to Produce Electric Semis in Australia Next Year

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Last Updated on: 22nd May 2025, 02:15 am

A significant order for electric semis, from Linfox, has encouraged Volvo to start production of BEV semis earlier than planned. Following a trial of two smaller electric trucks, Linfox announced plans to purchase 30 electric prime movers from Volvo Group. This is the largest order to date for battery electric prime movers in Australia. The trucks will be produced at Volvo’s production facility in the western suburbs of Brisbane, Queensland. Since freight transport produces 40% of all transport emissions in Australia, and 7% of the country’s total carbon emissions, fully electric semis will make a significant difference.

Volvo Electric
Volvo semi for Linfox. Photo courtesy Volvo.

Linfox has been delivering goods, from fresh produce to bulk fuel, in Australia for the past 65 years. It currently has a fleet of over 5,000 trucks and is the largest privately owned logistics company in the Asia Pacific. This has led some to say that 30 electric trucks is a small drop in a large bucket. However, it is a good beginning and is expected to encourage other logistics companies to follow suit. The Australian Renewable Energy Agency (ARENA) deserves credit for this step forward since it has been co-funding truck trials.

Volvo reports that “The order from Linfox includes 29 Volvo FH Electric and one FM Electric. The company currently has four electric Volvo trucks in its fleet. Linfox also ordered a total of 195 Volvo FH and FM trucks with conventional drivelines.” 

Volvo Linfox
Linfox electric fleet. Photo courtesy Volvo.

The domestic production of fully electric semi-trailers may reduce costs of production and shipping and has been eagerly anticipated for the past couple of years. State and local governments have been revising regulations around heavy vehicles in the expectation that many more will be on the roads, soon. Steps are also being taken to improve the charging corridor along the east coast of Australia where most of the population live and hence most of the heavy vehicle transport moves. You can read about it here and here.

The new vehicles are expected to reduce emissions in the states of Queensland, Victoria, and South Australia. I’m not sure why New South Wales has not been included. Ten battery-electric trucks have already been delivered to Linfox’s Brisbane headquarters. Each electric prime mover is expected to cover 250–300 km per day and recharge at the depot overnight. This would seem to indicate that they will not be employed on the long-haul routes between capitals (over 1000 km) but on shorter routes between logistics hubs. Those living in close proximity will benefit from reduced air and noise pollution, as will the drivers.

“This is a really bold step that will give other companies the confidence to do this,” Volvo Group Australia president Martin Merrick said. “We have around 90 battery electric trucks running around Australia today operating successfully and they’ve covered over 1.1 million kilometres collectively so they’re doing the job that people thought they couldn’t do.”

Volvo Linfox
Linfox buys Volvo electric trucks. Photo courtesy of Volvo.

Volvo Trucks global president Roger Alm said: “We have been moving with the market and we see battery electric truck demand has increased. We have eight models in production at factories around the world and we will be adding another factory with Wacol (in Brisbane) next year.” These are built in five factories — three in Europe, one in the US, and one in Australia.

“We are very proud to continue our close partnership with Linfox. The order for 30 Volvo electric trucks is proof of their trust in our company and in zero-emissions transport as a viable solution here and now,” Roger Alm continued. “Our commitment to start building electric trucks in Australia demonstrates our confidence in this technology, and means we can offer an industry-leading range of purpose-built electric trucks all around the world.”

Peter Fox AM (Member of the Order of Australia), Executive Chairman of Linfox, added, “Linfox is excited to partner with Volvo in driving the future and leading sustainable logistics in Australia. Further electrifying our fleet sets the standard for us and our customers and the entire industry.”

Electric trucks are employed in Australia by other companies, including Team Global Express (60) and ANC (112). These fleets comprise a range of trucks, not necessarily prime movers. Linfox’s announcement coincides with the Brisbane Truck Show. You can watch a video here showing the electric trucks on display. You can see the whole range of sizes, and drivetrains, ranging from HEV to BEV and even a hydrogen truck — built in partnership with Toyota! Janus Electric is displaying the improvements they have made to their conversion process — refurbishing diesel semi-trailers and converting them to battery electric.

The Volvo press release tells us: “Volvo Trucks is a global leader in electric and has sold more than 5,000 electric trucks to customers in 50 countries. Volvo’s current range of electric trucks consists of eight models tailored to meet a variety of transport needs, including city and regional distribution as well as construction and refuse handling. In 2024, Volvo had a segment share in electric in Europe of 47% (heavy trucks 16 tonnes and above) and the company also had a leading share in electric in North America.”

Meanwhile, a study from the University of Exeter in the UK has stated that we are approaching TCO (Total Cost of Ownership) parity between electric trucks and the equivalent diesel vehicles. Indeed, the study declares that “heavy- and medium-duty trucks in China, and vans in India and China are already cheaper over their lifetimes than their diesel counterparts.”

The study states that regulatory policies mandating emissions reductions are the best way to increase the number of electric trucks on the road and thus reduce costs. These could be combined with zero-emissions zones in cities. If these were coordinated across countries, there is a possibility of bringing forward the cost parity tipping point by two and half years.

The study concludes: “When combining policies, ZEV mandates used early in the transition are highly effective, as they increase the supply of EVs and create more choices for firms. Once the availability of EVs has increased, a carbon tax or an EV subsidy becomes more effective.”

Although it would be great if trucking companies could follow the example of Fortescue Metals and go all in on electric, I will appreciate the steps that can be taken. For the Australian trucking industry, it looks like the future is bright, quiet, electric and cost effective.

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