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The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership Estimates

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  • Romeo Danielis

    (Department of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, Italy
    Interdepartmental Center “Giacomo Ciamician” for Energy, Environment, Transport, University of Trieste, 34127 Trieste, Italy)

  • Arsalan Muhammad Khan Niazi

    (Department of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, Italy)

  • Mariangela Scorrano

    (Department of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, Italy
    Interdepartmental Center “Giacomo Ciamician” for Energy, Environment, Transport, University of Trieste, 34127 Trieste, Italy)

  • Manuela Masutti

    (Department of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, Italy
    Area Science Park, 34149 Trieste, Italy)

  • Asees Muhammad Awan

    (Department of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, Italy)

Abstract

This paper reviews the existing studies employing total cost of ownership (TCO) analysis to evaluate the comparative economic viability of battery electric trucks (BETs) and diesel trucks (DTs). A key finding is that until recent years, BETs have not been cost-competitive with DTs. Light-duty trucks and medium-duty trucks started to become competitive in 2021 (1) according to some estimates, whereas heavy-duty trucks might remain to be not competitive even in future decades. However, (2) TCO estimates differ across continents. (3) The combing effect of fuel prices and taxes is most likely responsible for the fact that BETs enjoy a stronger competitive position relative to DTs in Europe, Asia, and Oceania, whereas, in North America, most estimates assign them poor competitiveness, both presently and in the coming years. (4) Most studies underline that significant cost disproportions persist in the heavy-duty truck segment due to its demanding operational requirements and a lack of robust high-powered charging infrastructure. Consequently, substantial financial incentives and subsidies will be required for heavy-duty trucks to enhance their economic viability, potentially accelerating cost parity from post-2035 to the near future. This paper identifies several constraints in its TCO analysis, including limited data on residual values, variability in discount rates, depreciation costs, and a lack of longitudinal and market data for BETs.

Suggested Citation

  • Romeo Danielis & Arsalan Muhammad Khan Niazi & Mariangela Scorrano & Manuela Masutti & Asees Muhammad Awan, 2025. "The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership Estimates," Energies, MDPI, vol. 18(2), pages 1-20, January.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:2:p:429-:d:1570728
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    References listed on IDEAS

    as
    1. Gunawan, Tubagus Aryandi & Monaghan, Rory F.D., 2022. "Techno-econo-environmental comparisons of zero- and low-emission heavy-duty trucks," Applied Energy, Elsevier, vol. 308(C).
    2. Jahangir Samet, Mehdi & Liimatainen, Heikki & Pihlatie, Mikko & van Vliet, Oscar Patrick René, 2024. "Levelized cost of driving for medium and heavy-duty battery electric trucks," Applied Energy, Elsevier, vol. 361(C).
    3. Zichong Lyu & Dirk Pons & Yilei Zhang, 2023. "Emissions and Total Cost of Ownership for Diesel and Battery Electric Freight Pickup and Delivery Trucks in New Zealand: Implications for Transition," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    4. Noll, Bessie & del Val, Santiago & Schmidt, Tobias S. & Steffen, Bjarne, 2022. "Analyzing the competitiveness of low-carbon drive-technologies in road-freight: A total cost of ownership analysis in Europe," Applied Energy, Elsevier, vol. 306(PB).
    5. Romeo Danielis & Mariangela Scorrano & Manuela Masutti & Asees Muhammad Awan & Arsalan Muhammad Khan Niazi, 2024. "Fuel Cell Electric Buses: A Systematic Literature Review," Energies, MDPI, vol. 17(20), pages 1-17, October.
    6. Mingyue Hu & Xiao Wu & Yue Yuan & Chuanbo Xu, 2024. "Competitive Analysis of Heavy Trucks with Five Types of Fuels under Different Scenarios—A Case Study of China," Energies, MDPI, vol. 17(16), pages 1-21, August.
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