Volta Trucks, a Swedish-based all-electric commercial vehicle manufacturer and services provider, has been awarded subsidy funding worth €24.6 million from the German government to help reduce vehicle costs and make the switch to an electric vehicle fleet more attractive.
The German Federal Ministry of Digital Affairs and Transport has awarded Volta with subsidy funding for a total of 151 Volta Zero trucks – the firm’s purpose-built all-electric 16-tonne vehicle, with a range of 150-200km, designed for urban logistics. The first subsidised vehicles will be delivered to customers this year.
Boost for German orders
Volta confirmed that all orders received in Germany by June 2023 can benefit from a subsidy.
“This is a major achievement and enormous recognition for our all-electric truck even before the official start of production in the second quarter of this year,” said Usuf Schermo, Area Sales Manager, Germany and Austria at Volta Trucks. “With the new climate and transformation fund, Germany is becoming an absolute pioneer in Europe, from which Volta Trucks customers can now also benefit.”
Climate Protection Programme
The subsidy for the Volta Zero contributes to the implementation of the German government’s Climate Protection Programme 2030. The aim is to put low-CO2 emitting commercial vehicles on the road and to expand the refuelling and charging infrastructure. By 2030, about one third of the vehicle output in heavy goods transport in Germany is to be electric or based on electricity-based fuels.
From 2021 to 2026, around €1.3 billion are available to support the purchase of climate-friendly commercial vehicles. In addition, around €6.3 billion will be available for the construction or expansion of refuelling and charging infrastructure for cars and trucks. The additional investment costs for vehicle and infrastructure procurement will be subsidised by 80%, and feasibility studies will also be supported.
The 151 Volta Zeros will receive a total of €24.6 million in funding from the Federal Ministry of Digital Affairs and Transport under the Directive on the Promotion of Light and Heavy Commercial Vehicles with Alternative, Climate-friendly Drive Systems and Associated Fuelling and Charging Infrastructure (KsNI). The funding guideline is coordinated by NOW, and applications are approved by the Federal Office for Logistics and Mobility.
EIB debt funding
The subsidy funding news follows Volta’s statement last month that it is engaging with the European Investment Bank (EIB) for €40 million venture debt funding to support its “Truck as a Service” growth plan over the period 2023-2026.
Truck as a Service offers fleet managers a single, affordable, monthly fee that provides access to an all-electric Volta Zero, and all its charging infrastructure, servicing, maintenance, insurance, and training requirements, maximising uptime and operational efficiency.
The aim of EIB’s funding support for Volta Trucks is to contribute to the electrification of the road transport sector, by facilitating electric trucks deployment. The project is in line with the European Commission’s comprehensive framework of policies to reduce greenhouse gas emissions, including the Sustainable and Smart Mobility Strategy (December 2020) and the EU Green Deal (November 2021).
Additionally, the project contributes to the EIB’s objective for Sustainable Transport and Climate Action hence is in line with the Bank’s lending objectives and Transport Lending Policy.
Volta Trucks was founded in 2019 in Sweden and in total the firm has raised more than €360 million funding to date.
