Volta Trucks Secures €37M for Electric Delivery Trucks in London & Paris

The Challenge of Urban Trucking and Volta Trucks' Solution

While trucking is often linked to highway travel, sizable delivery vehicles are frequently seen navigating the congested streets of major cities worldwide. EV startup Volta Trucks highlights a significant issue: in London, these large commercial vehicles contribute to approximately 26% of pedestrian fatalities and a substantial 80% of cyclist fatalities. They also represent a disproportionately large source of carbon emissions.

Volta’s approach centers on electrifying and fundamentally redesigning large cargo vehicles – known as Heavy Goods Vehicles (HGVs) in Europe – specifically for middle- and last-mile deliveries within urban environments. A company representative explained to TechCrunch that the conventional truck design is incompatible with city layouts, yet outright banning trucks from city centers isn’t a viable solution.

Recent Funding and Investors

Volta Trucks has successfully secured €37 million (equivalent to $44 million) in a funding round to expedite its development plans. Initial deployments of pilot vehicles are scheduled for London and Paris.

Luxor Capital Group, based in New York, spearheaded the investment, with continued support from Byggmästare Anders J Ahlström Holding of Stockholm. Additional investors include Proterra, a U.S. manufacturer of electric trucks and batteries, and Agility, a supply chain management firm.

The Genesis of Volta Trucks

The concept for Volta Trucks originated with co-founder and Swedish entrepreneur Carl-Magnus Norden following the unveiling of the Tesla Model 3 by Elon Musk. Norden observed a notable lack of comparable efforts to electrify the commercial vehicle sector, despite its significant contribution to carbon emissions.

After four years of development, Volta – distinct from Volta Charging, the European EV charging network – has engineered a truck offering the driver a 220-degree field of vision, akin to that of a city bus. The driver’s seat is centrally positioned within the cab.

The 16-ton Volta Zero incorporates a single unit housing the electric motor, transmission, and rear axle, sourced from OEM supplier Meritor. This integrated unit, termed an eAxle, maximizes space between the chassis rails for battery placement.

Battery Technology and Production Goals

These batteries will provide a range of 95 to 120 miles and are being developed by Proterra, a supplier and now investor, who Volta believes can ensure long-term battery supply and increased production capacity.

Volta anticipates producing up to 5,000 trucks by the close of 2023, scaling up to 14,000-15,000 units in 2024, and reaching 27,000 trucks by 2025.

Business Model and Deployment Strategy

Volta intends to offer a “truck as a service” model, encompassing leasing, insurance, charging infrastructure, and maintenance services. While direct truck sales are also planned, the company projects that leasing will constitute 50%, potentially reaching up to 80%, of its revenue.

The company is preparing to launch a fleet of six research and development vehicles in London and Paris early in the year for internal testing. A pilot program involving approximately 33 vehicles will be initiated with customers in two major European cities by mid-year.

Full-scale production is targeted for the end of 2022. Manufacturing, excluding the initial six beta trucks, will be handled by Steyr Automotive in Austria, following a manufacturing agreement announced last week.

Current Orders and Funding

Volta currently holds letters of intent for 2,500 trucks, with the aim of converting these into firm, deposit-backed orders as series production nears. This latest funding round brings the company’s total funding to approximately €60 million ($71 million).