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To accelerate the transition to a sustainable economy and reduce greenhouse gases (GHGs), it is essential to address transportation. This is what Lion Electric is doing, one truck at a time.
Our firm is pleased to have supported this company through different stages of its development. To find out more about the company and the new economy it represents, we spoke with Patrick Gervais, Vice-President, Marketing and Communications at Lion Electric.
The heavy- and medium-duty truck and bus sector alone accounts for 43% of transportation-related GHG emissions. “Trucks are the most polluting vehicle where we can have an immediate impact. A single truck produces 75 to 100 tonnes of GHGs per year,” says Patrick Gervais.
Fully electric company
Founded in 2008, the company has gone green over time, stepping away from gasoline-powered vehicle production to focus on all-electric Class 5 to Class 8 buses and heavy-duty trucks.
The development of 100% electric school buses started in 2011 and the first vehicles were introduced in 2016. Since 2019, the company no longer produces any diesel vehicles.
With a current order book of 2,300 vehicles, it is clear that this was the right decision. In 2021—the year it went public—Lion Electric delivered 196 vehicles. By June of this year, the first six months of 2022, it had delivered 189 vehicles.
Challenges met with flying colors
To meet its commitments, Lion Electric increased production speed by 72% in one year at its Saint-Jérôme plant, and acquired a 900,000-square-foot facility in Illinois, USA. The company has grown from 115 employees in 2018 to more than 1,300 today, including 350 research and development engineers.
Lion Electric designs, manufactures and assembles several key components of its vehicles: chassis, battery packs, truck cabins and bus bodies.
The company will also be commissioning a battery pack assembly plan in Mirabel by the end of the year, thereby securing its supply.
“With more than 700 vehicles on the road having travelled over 16 million kilometres in North America, Lion Electric has already made a difference for society and the environment,” says Patrick Gervais.
Although heavy electric vehicles are still more expensive than gasoline-powered vehicles at this time, buyers have already achieved significant savings: 80% in energy costs and 60% in maintenance costs.
What are the challenges of electrifying heavy vehicles?
Incentives needed
While there is some discussion about incentives, they are part of the solutions arising from public policy to support the energy transition.
“Financial incentives and regulations are key to accelerating the electrification of transportation, but there is a growing sense of awareness that it is a worthwhile solution,” says Patrick Gervais.
Regulations to control the market
The electrification sector must aim for full supply chain integration and ask the government to regulate tenders to ensure that assembly is done in Canada with Canadian content in order to counteract the competition between industrialized countries.
Lack of charging stations
Electric trucks still do not meet long-distance transportation needs, but the range can be from 250 km for buses to 400 km for trucks.
The availability of charging stations throughout the country is reducing range concerns. Technologies are advancing rapidly, and in a few years, long-distance transportation will become a reality.
Charging time
Lion Electric created LionEnergy to help buyers determine their specific charging needs and manage the charging infrastructure installation to optimize the transition.
Change management
Employees must be open to innovation because the world of electrification is moving fast.
This is a growing industry and Lion Electric is well positioned in this rapidly evolving market to participate in the future challenge of reducing the environmental impact of businesses and people.