According to McKinsey, battery electric vehicle technology will be key to reducing road freight emissions and achieving global climate targets.
The McKinsey analysis emphasizes the need to reduce CO2 emissions from road freight vehicles, which significantly contribute to global emissions. The best way to achieve this is by transitioning from combustion engines powered by fossil fuels to zero-emission propulsion systems, with battery electric vehicles (BEVs) considered the most promising short-term solution.
Alternatives like hydrogen fuel cell electric vehicles (H2-FCEVs), hydrogen internal combustion engines (H2-ICEs), and renewable fuels exist, but each has advantages and challenges.
Substantial advancements in battery technology and cost reductions have made BEVs attractive for many use cases. However, they face challenges such as long charging times, infrastructure needs, and high upfront costs. Hydrogen powertrains offer faster refueling and longer ranges but require more development and scale-up.
OEMs are urged to develop efficient and commercially attractive BEVs, where mastering battery technology is critical. Currently, two battery types—nickel manganese cobalt (NMC) and lithium iron phosphate (LFP)—are the best options, with lithium manganese iron phosphate (LMFP) expected to be a leading choice in the future due to its superior performance.
Read the full report here.