Next step in joint venture agreement for European charging network for electric trucks

16 DECEMBER 2021

The three leading European commercial vehicle manufacturers TRATON GROUP with its brands Scania and MAN, Daimler Truck, and Volvo Group have signed a binding agreement to install and operate a high-performance public charging network for battery electric, heavy-duty long-haul trucks and coaches across Europe. In July, the companies announced the intention to do so through a non-binding agreement.

The parties are committed to initiating and accelerating the build-up of charging infrastructure for the increasing number of customers of electric vehicles in Europe and contribute to climate-neutral transportation in Europe by 2050.

1,700 charging points

The planned joint venture (JV) — to be equally owned by the three parties — is scheduled to start operations in 2022. The parties will together invest €500 million, which is assumed to be the largest charging infrastructure investment in the European heavy-duty truck industry to date. The plan is to install and operate at least 1,700 high-performance green energy charging points on and close to highways as well as at logistic and destination points within five years of the establishment of the joint venture.

The plan is to increase the number of charging points significantly by seeking additional partners as well as public funding. The future joint venture is planned to operate under its own corporate identity and be based in Amsterdam, Netherlands and will be able to build on the broad experience and knowledge of its heavy-duty trucking founding partners.

Necessary infrastructure

The future joint venture will act as catalyst and enabler for realising the European Union’s Green Deal for carbon-neutral freight transportation by 2050 — both by providing the necessary infrastructure and targeting green energy at the charging points. The joint action of the TRATON GROUP with Scania and MAN, Daimler Truck, and Volvo Group addresses the urgent need for a high-performance charging network to support truck operators with their transition to CO₂-neutral transport solutions, especially in heavy-duty long-distance trucking. High-performance charging infrastructure enabling long-haul trucking is a cost-efficient way towards significant emission reductions.

A part of the solutions

Christian Levin, CEO of Scania and TRATON GROUP: “We have the strong opinion that we as the TRATON GROUP together with our brands Scania and MAN as well as the commercial vehicle industry as a whole will be part of the solution when it comes to a CO₂-neutral world. A collaboration with strong competitors like Daimler Truck and Volvo Group might seem unusual. However, the topic is of crucial importance and this unique cooperation will make us faster and more successful in delivering the transformational action needed to tackle climate change. Our joint venture will be a strong push for the rapid breakthrough of battery electric trucks and coaches, the most efficient and sustainable transport solutions.”

Breakthrough for the transport industry

The three partners see this as a breakthrough for the transport industry to cut carbon emissions — and for other industries to benefit in several ways. A recent industry report* is calling for up to 15,000 high-performance public and destination charging points by no later than 2025, and up to 50,000 high-performance charging points by no later than 2030. Therefore, this kick-start is a call for action to all other industry players, as well as governments and policy makers, to work together for a rapid expansion of the necessary charging network to be able to contribute to reaching the climate targets. As a clear signal towards all stakeholders, the charging network of the three parties will be open and accessible to all commercial vehicles in Europe, regardless of brand.

Customer-centric approach taking different applications into consideration

By focusing on customers’ needs, different applications will be taken into consideration. Battery electric vehicle fleet operators will be able to leverage both fast charging tailored to the 45-minute mandatory rest period in Europe focusing on long-distance transport — the highest priority of the future joint venture — and also overnight charging.

Partners and competitors

The TRATON GROUP with Scania and MAN, Daimler Truck, and Volvo Group will own equal shares in the planned JV but continue to be competitors in all other areas. The creation of the JV is subject to regulatory approvals.

*Published in May 2021 by ACEA, the European Automobile Manufacturers Association (Association des Constructeurs Européens d'Automobiles), the organization of all major truck manufacturers in Europe, also backed by the TRATON GROUP, Daimler Truck, and Volvo Group.