Electric cars and bikes may be making the most buzz these days, but electric trucks are not far behind. With a lot of OEMs working to electrify and re-model delivery and distribution trucks, the segment is poised to get crowded soon. In a recent development, Volta Trucks, an automotive company offering electric trucks for sustainable cities, announced that it has raised €37M in its Series B round of funding.
Speaking on the development, Essa Al-Saleh, CEO of Volta Trucks, says, “The successful conclusion of our Series B funding round gives us positive external validation of our journey. Attracting several first-time investors, plus increased investment from existing partners totalling €37M, is a strong endorsement of the path we are on.”
The round was led by New York-based hedge fund Luxor Capital, a firm that manages more than $8B in assets and has made investments in many automotive and alternative energy companies.
The round also saw participation from existing investor Stockholm-based Byggmästare Anders J Ahlström. Also joining the investment bandwagon are strategic partners and first-time investors Proterra and Agility.
Proterra was selected as the battery supplier for Volta Zero – Volta’s first fully-electric 16-tonne vehicle.
Agility is a provider of supply chain services, innovation, and investment. Agility’s investment is part of its broader strategy of investing in supply chain sustainability and resilience. It is focused on partnerships with companies that are developing cleaner commercial vehicles, mass-transit alternatives, freight marketplaces, and digital load-matching platforms – all intended to reduce CO2 emissions, congestion, and fuel use.
Funds to accelerate expansion
The raised capital will enable Volta Trucks to further expand the development of Pilot Fleet vehicles that will be evaluated by customers in London and Paris in mid-2022 – in advance of the start of full-scale production by the end of 2022.
The funds will also help facilitate the company’s Road-to-Zero Emissions strategy that intends to see four Volta Zero models developed and offered in European and US markets, with over 27,000 vehicles expected to be sold by 2025.
Electric trucks for sustainable cities
Founded in 2019 by Carl-Magnus Norden and Kjell Walöen, Volta Trucks is a fully-electric goods vehicle manufacturer and services company. It has offices in Sweden, France, and the UK, and is partnering with a number of global leaders in the supply chain for the development and production of its vehicle Volta Zero.
About the Volta Zero
The Volta Zero is a purpose-built full-electric 16-tonne vehicle designed for inner-city logistics, as well as to reduce the environmental impact of freight deliveries in city centres. The truck offers an operating range of 150-200 Kms (95–125 miles) and claims to eliminate an estimated 1.2M tonnes of CO2 by 2025.
The Volta Zero is designed so that the operator of the truck can sit in a central driving position with a much lower seat height than a conventional truck. This design, plus a glass house-style cab design, gives the driver a wide 220-degrees of visibility, minimising dangerous blind spots.
After recently signing a manufacturing agreement with Steyr Automotive, Volta Trucks has also confirmed positive updates to its order book. Pre-orders for Volta Zero have exceeded 2,500 vehicles with an order value of over €600M – doubling in the past three months.
Essa Al-Saleh says, “To be able to concurrently announce that we now have over 2,500 pre-orders for the full-electric Volta Zero, shows that customers also understand and share our mission to revolutionise and decarbonise city centre logistics, and bring fully-electric commercial vehicles to market as soon as possible.”
Truck-as-a-Service rental model
Currently, many fleet owners aren’t hesitant to change their trucks fearing the technology shift. Volta has, therefore, come up with a risk-reducing “Truck-as-a-Service” rental model for fleet owners wherein the startup maintains ownership and supplies a full unit.
This includes a truck, box lift, electricity audit, infrastructure installation, electricity supply, insurance, tax, tires for the vehicle, and personnel training. In addition, the company also provides full financing with monthly billing options, making it easier to make the technology switch.