Supply Chain Weekly Wrap-Up 02/17/2023-02/23/2023

Republished By Plato

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Uber Freight announce plans for electric trucks in California

Uber Freight a subsidiary of Uber Technologies announced plans to deploy their electric trucks on select routes in California. The EV move will involve Uber Freight’s expansive network of digitally enabled carriers. The plan will be a joint collaborative effort with electric vehicle (EV) manufacturer WattEV. They possess the technological capabilities to execute this plan as you could see them as a pioneer in the EV trucking industry. Their innovative electric fleet and charging infrastructure Uber Freight will use.

The first shipper to participate in a trial run of the route will be CHEP, a global leader in sustainable logistics. The trial run will build on WattEV’s mission to develop a national network of heavy-duty charging facilities that will serve fleets of electric trucks. However, this is a long-term goal as the U.S. still lacks behind Europe for EV adoption. There are still many states that oppose the adoption of EV such as Wyoming, as their oil and gas industry play a prominent role in their economy.

Nevertheless, the obvious benefits are zero emissions and the absence of engine noise and fumes. A widespread adoption of electric trucks will reduce reliance upon non-renewable fuels the price of which is volatile right now. Uber Freight Head of Sustainability, Illina Frankiv said “Electric trucks are finally here, and we’re proud to partner with WattEV to offer Uber Freight shippers even more ways to move freight more sustainably.”

IKEA’s carbon footprint shrinks as it switches to renewables

IKEA said its emissions in 2022 fell 5% from the previous year, putting the company in line with its 2030 goal of a 15% reduction against its 2016 baseline, according to its most recent climate report. To achieve this IKEA has the goal of using only recycled or renewable materials by 2030. This includes other initiatives like using bio-based wood glues, sourcing 100% recycled materials for the manufacturing of its products. This is extended to their suppliers as they want them to also use total renewable energy to have a sustainable supply chain.

In the past decade IKEA received bad press and accusations thrown at them from: The U.K. based Earthsight accused Ikea of sourcing wood illegally. In addition to, the company reportedly purchased thousands of acres of forest in Romania, home to the largest tracts of virgin forest in Europe.

In principle IKEA has shown to be going in the right direction to becoming more sustainable however, only time will tell if they meet their end of decade goals of cutting emission. This story will develop so I suggest keeping yourself updated on the outcome.

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Nio plans new battery plant in China

Nio plans to build its first battery plant to produce their own batteries for their vehicles. The Chinese EV maker seeks to cut its reliance on CATL (a Chinese battery manufacturer) for supplies. The plant will facilitate Nio’s ambition to ramp up its presence in the electric vehicle (EV) market at home and abroad. It will give them a greater control over their supply chain. Now the R&D and manufacturing of key aspects of their cars can happen in-house without outsourcing and relying on other suppliers.

The new plant will be located next to its main manufacturing hub in Hefei city, in eastern China’s Anhui province. The factory will have an annual capacity to produce 40 gigawatt hours (GWh) of batteries, which can power about 400,000 units of long-range electric vehicles (EVs). These new versions of EVs are thought to be shipped and sold for the European market, as an expansion plan for Nio.

Crucially Nio has been seeking to gain more control over batteries, the most expensive single-piece component, to improve its profitability. Nio’s chairman William Li, said that “Nio would start making 800-volt lithium-ion battery packs, which recharge faster, in the second half of 2024.” This new plant is a step towards this goal.

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