UPS and FedEx’s transition to electric vans slowed by battery shortages, low supply

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Ups News

Fedex,California,United States

The path to electrification by the package delivery giants is critical to U.S. President Joe Biden’s transportation climate goals

are facing uncertainty in U.S. supplies of big, boxy electric step vans they need to replace their gas guzzlers and make a dent in the country’s climate-warming tailpipe emissions.

UPS and FedEx obtained some relief from EV supply constraints when trend-setting California, the epicentre of electrification, put on hold a rule that would have required them to purchase electric delivery vehicles exclusively starting this year. An industry group whose members include UPS and FedEx has filed a lawsuit claiming that California first needed the approval of U.S. regulators.

UPS and FedEx, which each have rolled out about 1,000 electric step trucks, are keeping their options open. UPS made a big bet on the EV transition in 2020, investing in UK-based Arrival and placing an order for 10,000 electric vans. But Arrival ran out of money before selling a single vehicle to UPS.

Fedex California United States Demand UPS Arrival Cent Fedex Daimler U.S. Environmental Protection Agency

 

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