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The impact of electric vehicles on logistics and the supply chain

electric car logistics

The rise of electric vehicles is profoundly transforming the logistics and supply chain sectors. With a 37% increase in sales of electric vehicles in 2023 compared to 2022, it is crucial to understand the implications of this transition for logistics operations. This article explores in depth the impact of electric vehicles on logistics and the supply chain, highlighting the benefits, challenges and innovations underway. Find out how these changes are transforming the sector, and the strategies to adopt for a successful transition to sustainable logistics.

 

Also read → Last-mile logistics: a challenge for companies

Table of contents

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The importance of lithium batteries in electric logistics

Production and management of lithium batteries

The production of lithium batteries, essential for electric vehicles, represents a major challenge for modern logistics. In 2023, global lithium production reached over 180,000 tonnesquadrupling since 2010, and is set to rise further to meet demand between now and 2025, and again by 2030.

What are the logistical challenges?

The production of lithium batteries is complex and presents a number of logistical challenges. Lithium is mainly mined in Australia, Chile and China, requiring extensive international transport to get the ore to the battery production sites. In France, companies like Eramet play a crucial role in lithium production and management. For example, the San José lithium mine in Spain, managed by Eramet, is one of Europe's flagship projects for securing lithium supplies.

Another major challenge is the environmental impact of lithium mining. Mining can cause significant ecological damage, particularly in terms of water consumption and deforestation. Sustainable practices are therefore needed to minimize these impacts and ensure a responsible supply chain.

What impact does battery management and recycling have on the supply chain?

Managing used lithium batteries also poses major logistical challenges. Recycling batteries recovers up to 95% of strategic materials, reducing dependence on the extraction of new resources and limiting the overall environmental impact. In France, companies such as Véolia and Suez are at the forefront of battery recycling, developing innovative processes to treat and reuse used battery components.

The battery recycling process is essential for a sustainable supply chain. By integrating efficient recycling solutions, companies can reduce their carbon footprint and create a circular economy. For example, Northvolt, a major player in Europe, is committed to using recycled materials in the manufacture of new batteries, demonstrating the importance of closing the supply chain loop.

 

Also read → What raw materials are used in electric car batteries?

Battery innovation and durability

Lithium battery technology continues to transform, with innovations aimed at improving durability and reducing costs. These advances are crucial to support the integration of electric cars into logistics operations.

The latest innovations focus on several key aspects to increase battery performance and durability:

 

  • Solid-state batteriesThese replace liquid electrolytes with solids, increasing energy density and safety while reducing charging time.

  • Nanomaterials, the integration of nanomaterials such as silicon nanoparticles into battery electrodes improves capacity, stability and cyclic performance.

 

  • Artificial Intelligence, AI is revolutionizing battery management by optimizing charge cycles, monitoring battery health and predicting failures.

To ensure the sustainable management of lithium batteries, several strategies are being implemented:

  • Battery recyclingWith battery recycling, up to 95% of strategic materials can be recovered, reducing dependence on the extraction of new resources.

  • Cost reductionBattery costs have fallen by 90% since 2010and are set to fall a further 40% by the end of the decade.

 

This lower cost makes solar projects with battery storage more economical than new coal- or gas-fired power plants in many parts of the world. Nevertheless, universities and research centers are currently exploring alternatives to traditional lithium-ion batteries. 

In France, companies like Véolia and Suez are developing innovative processes to process and reuse used battery components, contributing to a circular economy. Lower costs make solar projects with battery storage more economical than new coal- or gas-fired power plants in many parts of the world. Finally, lithium-sulfur batteries offer higher energy density and lower costs, although challenges relating to cycle stability have yet to be overcome.

These innovations and strategies show how battery technology is evolving to meet the growing need for sustainability and efficiency in logistics operations and beyond. With these advances, lithium batteries are poised to play a key role in a greener, more sustainable energy future.


Also read → Summer's impact on electric batteries: what professionals need to know

Sustainable logistics and electric vehicles

The advantages of electric vehicles for sustainable logistics

Reducing CO2 emissions

One of the main advantages of electric cars is their ability to significantly reduce CO2 emissions. According to ADEME, a clean model emits on average six times less CO2 per kilometer than an equivalent internal combustion model. This reduction is crucial for companies seeking to minimize their environmental impact while meeting growing sustainability requirements.

Improving energy efficiency

Electric vehicles are more efficient than combustion engines. Their electric motor has an energy efficiency close to 80%, which is almost four times greater than that of internal combustion engines. This not only reduces energy consumption, but also cuts operating costs.

Other benefits include reduced maintenance costs (less upkeep), numerous subsidies and tax incentives available to companies, and improved brand image.

Several French companies have successfully adopted electric logistics solutions:

 

  • La Poste La Poste: a pioneer in this field, uses a fleet of electric vehicles for its urban deliveries. This initiative has considerably reduced its CO2 emissions and noise pollution in cities. In 2020, La Poste announced that its electric cars had covered more than 30 million kilometers, contributing to greener logistics.

 

  • Carrefour : The Carrefour group has also integrated electric trucks into its delivery fleet. In collaboration with Renault Trucks, Carrefour uses electric trucks for its inner-city deliveries, reducing its carbon footprint and local pollutant emissions.

 

  • Renault : with its strategic plan "Renaulution" strategic planRenault Group has invested heavily in electric vehicles. This plan includes optimizing the company's internal logistics by using electric cars to transport parts between factories and distribution centers, demonstrating Renault's commitment to a more sustainable supply chain.


Also read → The benefits of electric cars for SMEs

What are the challenges and solutions for sustainable logistics?

Integrating electric vehicles into supply chains presents a number of major challenges, not least the initial investment required to purchase electric vehicles and install charging infrastructure. SMEs are particularly hard hit by the high initial cost.

In addition, the limited availability of charging stations, particularly in rural areas and logistics infrastructures, is a major obstacle. Electric vehicles also have lessrange than combustion vehicles, which can lead to interruptions in logistics operations. Finally, variations in environmental regulations and support policies between different regions can complicate strategic planning and regulatory compliance for logistics companies.

 

However, to overcome these challenges, a number of solutions have been put in place. These include the ADVENIR program, specially designed to encourage the installation of charging stations and certain tax incentives (accelerated depreciation, exemption from TVSexemption, CET reduction). Investment in the development of recharging infrastructures through public-private partnerships is also a possibility.

 

In addition, the use of advanced fleet management technologies (UPS ORION) and route optimization can maximize energy efficiency and minimize downtime for recharging. To ensure sustainable logistics, it also seems necessary to train drivers well in eco-driving and raise staff awareness of the benefits of electric cars and sustainable practices to improve the adoption and effectiveness of these technologies.


Also read → Sustainable mobility, challenges and solutions

Environmental impact of electric vehicles in the supply chain

Reducing CO2 emissions and carbon footprint

Electric vehicles offer considerable potential for reducing CO2 emissions in the supply chain. This reduction is mainly due to the absence of fossil fuel combustion during their use, which eliminates the direct CO2 emissions that are common with combustion-powered vehicles.

CO2 emissions during use

Electric cars emit no CO2 when in operation, unlike combustion-powered vehicles. By integrating clean models into logistics operations, companies can significantly reduce their operational carbon footprint. Some examples, Mercedes-Benz has announced that its initiatives to use CO2-neutrally produced batteries and integrate electric vehicles into its fleet are expected to reduce its CO2 emissions by 50% by 2030 .

CO2 emissions during production

The production of electric cars, particularly batteries, is energy-intensive and generates CO2 emissions. However, significant progress is being made to make these processes more sustainable. For example, the use of recycled materials and renewable energies in battery production can reduce their carbon footprint by over 30%. Many manufacturers, such as Volkswagen, Peugeot or BMW are currently working with suppliers to ensure that battery cells are produced from renewable energies, thereby reducing the CO2 emissions associated with production.

Aspect Electric vehicles Internal combustion vehicles
CO2 emissions during use
0 kg CO2/km
Approx. 2.31 kg CO2/litre of fuel
CO2 emissions during production
High, mainly due to battery manufacturing
Lower energy consumption for motor production
CO2 reduction thanks to renewable energy
Can reduce emissions by 50% with renewable energy sources
N/A
Total life cycle (Production + Use)
40% to 60% reduction in CO2 emissions compared with combustion engines
High dependence on fossil fuels
Use of recycled materials
40% of materials recycled by 2030
Less common, dependence on new materials
Infrastructure and recharging
Necessary development of charging stations, reduced impact with renewable energy
Existing fuelling infrastructure
Battery recycling
Technology under development, significant impact on emissions reduction
Less impactful engine recycling
Indirect emissions
Fewer indirect emissions thanks to recycling and use of renewable energy
High indirect emissions, including fuel extraction and transport

Waste management and recycling

Managing the waste generated by electric vehicles is a crucial issue in reducing the environmental impact of green technologies. Lithium-ion batteries pose specific challenges due to their chemical composition and the complexity of the recycling process. Batteries contain valuable and potentially toxic materials such as lithiumand cobalt and nickel.

These components, if not properly recycled, can cause significant environmental damage. For example, cobalt can cause soil and water pollution if released into the environment, while lithium extraction is energy-intensive and often leads to excessive water consumption. Several recycling initiatives have been set up:

 

  • Closed-loop recyclingThis method involves reusing materials recovered from used batteries to manufacture new batteries, thus reducing dependence on the extraction of new resources.

  • Use of renewable energies, Some companies, like Northvolt, use renewable energies to power their battery recycling plants, minimizing the CO2 emissions associated with the recycling process.

 

  • Advanced recycling technologiesCompanies such as Li-Cycle and Redwood Materials are developing advanced technologies to improve the recovery rate of valuable materials from lithium-ion batteries. These technologies can recover up to 95% of critical materials.

  • Regulations and government initiativesThe European Union has introduced strict regulations for the management of battery waste, obliging manufacturers to recycle a significant proportion of the batteries placed on the market.

 

Also read → Electric car battery recycling

Conclusion

The impact of electric vehicles on logistics and the supply chain is considerable, offering substantial reductions in CO2 emissions and an improved carbon footprint. With continued advances in battery technology and an expanding recharging infrastructure, electric cars represent a viable and sustainable solution for the future. France already boasts over 100,000 recharging points, facilitating the adoption of these environmentally-friendly vehicles. Recycling initiatives and resource optimization thus confirm the potential of electric vehicles for a more environmentally-friendly supply chain.

Image by Adrien-Maxime MENSAH
Adrien-Maxime MENSAH

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