CEFC and Volvo Group's $70 Million Initiative to Boost Electric Truck Adoption

Under this collaboration, Volvo customers will have access to an interest rate discount of up to 0.5% for leasing medium and heavy-duty battery electric trucks. Additionally, the financing package includes support for installing EV charging infrastructure, as well as a residual value support mechanism to reduce operating lease costs and support the future value of HD BEVs.

CEFC Executive Director Richard Lovell emphasized the importance of this initiative, noting that as other sectors decarbonize, transport is expected to become Australia's largest source of emissions by 2030. He highlighted that switching to battery electric trucks presents a significant opportunity for freight operators and businesses to lead the path to net-zero emissions while managing a growing freight network and a stronger economy.

Volvo Group Australia CEO Martin Merrick acknowledged the critical timing of this finance package, stating that the cost of entry is a significant hurdle for many customers wanting to implement electric transport solutions. He expressed confidence that this program will make the transition more affordable, allowing more customers to take the first vital step towards a fossil-free future.

David McGuire, Managing Director of Volvo Financial Services, added that working with the CEFC will act as a key enabler to help drive the uptake and adoption of heavy electric vehicles. He noted that reducing some of the financial risk associated with new technologies like battery electric trucks, and offering a competitive finance discount, helps lower the premium associated with this new technology.

The CEFC has directly committed over $200 million in electric vehicle-related projects since its inception to help decarbonize Australia's transport sector. These investments include backing Australia's first electrified bus fleet and increasing EV infrastructure with JET Charge. The CEFC has also helped finance more than 15,000 electric vehicles, exceeding $1 billion in value, including third-party capital through its co-finance programs.

In summary, the partnership between the CEFC and Volvo Group represents a significant step towards reducing transport-related emissions in Australia. By providing financial incentives and support for infrastructure development, this initiative aims to accelerate the adoption of electric trucks, contributing to a more sustainable and efficient transport sector.