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COINTURK FINANCE > Business > Amazon Expands Electric Freight Fleet with $1 Billion European Investment
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Amazon Expands Electric Freight Fleet with $1 Billion European Investment

Overview

  • Amazon invests $1 billion to electrify transportation operations across Europe by 2040.

  • The company orders 200 eActros 600 trucks for high-mileage operations in Europe.

  • Plans include expanding electric delivery vans to 10,000 units by 2025.

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Amazon (NASDAQ:AMZN) is accelerating its transition toward zero-emission logistics with a significant investment exceeding $1 billion to electrify and decarbonize its transportation network in Europe. As part of this initiative, the company has unveiled its largest-ever order for heavy-duty electric trucks, aiming to integrate over 200 Mercedes-Benz eActros 600 vehicles into its European fleet. This development is a critical component of Amazon’s commitment to achieving net-zero carbon emissions across its operations by 2040 under its Climate Pledge.

Contents
What makes the eActros 600 pivotal for Amazon’s strategy?How does this fit into Amazon’s broader decarbonization efforts?

What makes the eActros 600 pivotal for Amazon’s strategy?

The eActros 600, Mercedes-Benz Trucks’ flagship long-haul electric truck, will play a central role in Amazon’s middle-mile logistics in the UK and Germany. With a range of 500 kilometers and battery capacity exceeding 600 kilowatt hours, these trucks are engineered to handle high-mileage routes while producing zero exhaust emissions. Amazon anticipates these vehicles will collectively transport over 350 million packages annually once fully operational. To support this fleet, it plans to deploy 360kW charging infrastructure, enabling fast charging from 20% to 80% capacity in just over an hour at critical locations.

How does this fit into Amazon’s broader decarbonization efforts?

This electric truck order is part of Amazon’s larger sustainability strategy, which includes expanding its use of low-carbon fuels and alternative energy solutions for logistics. Beyond heavy trucks, Amazon and its partners currently operate over 3,000 electric delivery vans across Europe, with plans to increase this number to 10,000 by the end of 2025. Additionally, the company has begun leveraging the UK’s electric rail network for package transport and piloting innovative last-mile solutions, such as on-foot deliveries using restockable carts in London.

Amazon’s efforts to electrify its fleet have evolved over time. By the end of 2024, its European network included 38 electric heavy trucks, with 50 more active in California. The recent $1 billion investment signals a major scale-up compared to these earlier steps, reflecting Amazon’s intent to lead the shift toward sustainable logistics on a larger scale. Similar projects from competitors and industry trends reinforce the growing importance of decarbonizing transportation networks for environmental compliance and customer loyalty.

Highlighting the significance of this initiative, Andreas Marschner, Vice President of Amazon Worldwide Operations Sustainability, stated:

“This order of more than 200 electric trucks underlines our commitment to being a leader in electrifying heavy goods transportation in Europe. It is the biggest electric heavy truck order by Amazon to date anywhere in the world, and is an important step as we work to achieve our Climate Pledge commitment to reach net-zero carbon emissions across our operations by 2040.”

Mercedes-Benz Trucks expressed enthusiasm for the partnership, with Karin Rådström, Chairwoman of Daimler Truck AG, remarking:

“We are very pleased that Amazon, a pioneer in the transformation towards alternative drives, has chosen the eActros 600, a gamechanger for sustainable transportation.”

Amazon’s comprehensive approach underscores the challenges and opportunities in deploying electric heavy goods vehicles at scale. Developing the necessary charging infrastructure for long-haul trucks remains a key hurdle but could pave the way for broader industry adoption. By focusing on integrating electric solutions into diverse aspects of its supply chain, Amazon sets an example for balancing operational efficiency with sustainability commitments.

The global push for greener logistics continues to intensify, with corporations like Amazon investing heavily in solutions to reduce their carbon footprints. The company’s focus on electrifying its fleet, coupled with charging infrastructure development and rail integration, creates a model that other logistics providers might replicate. As electric vehicle technologies mature, integrating them across supply chain networks could become standard practice within the industry.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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