Electric Trailers Cut Diesel Costs for Australian Freight

Trucking operators burning fuel amid high prices are finding an alternative in battery-powered trailers designed to cut diesel consumption without replacing prime movers.

In South Australia, Dean Panos and Stephen Bussenschutt are building battery-powered trailers to reduce the pulling power required for heavy transport. “[They have] an extra 400 horsepower that can provide more than 50 per cent of the workload for the vehicle, so we’re targeting a 50 per cent diesel reduction,” Mr Panos said.

VE Motion Founders Pivot to Heavy Transport

Before shifting their focus to solar systems and battery technology—where they spotted a distinct economic shortfall within the freight sector—VE Motion’s creators originally built their careers in diesel-based power generation. “We saw that the cost of diesel on the grid is about 10 times the cost of generally where the energy price is,” Mr Panos said.

To scale their operation, the pair bought an established trailer manufacturing business at Murray Bridge that came with an existing agricultural customer base. “Most of our inquiries have been from the agricultural sector,” Mr Panos said, listing mushroom farmers, milk carters, bulk wine industries, and pig farmers.

Farmers and Haulage Fleets Test New Tech

The first customer for the new trailers is Goulburn livestock farmer Andy Divall, who also runs a large civil construction business and burns about 120,000 litres of diesel a week. “I burn a lot of diesel, probably 120,000 litres a week and I’m embarrassed by that,” Mr Divall said, adding that he considers the current reliance unsustainable for the world.

Mr Divall has already added electric technology to his operation, including utes, earthmoving equipment, and a converted electric truck supplied by Australian manufacturer Janus. That 10-year-old converted diesel truck runs between Goulburn and Sydney using a battery-swapping station, saving money when fuel prices sit at $2.30.

Now he is testing what fuel savings VE Motion’s electric trailer will deliver. “I’m happy if we get a 25 per cent result,” Mr Divall said. “Fifty per cent’s fairly ambitious, but I hope the guys prove me wrong.”

Forestry Seeks Relief From High Fuel Expenses

In the Green Triangle region of South Australia and Victoria, fuel remains one of the largest expenses and environmental liabilities for the forestry industry. “Sadly in forestry, the one component that hasn’t changed is we’re fuel intensive,” Adrian Flowers, whose family runs a timber harvesting and haulage business, said. His company’s fuel prices have more than doubled in recent years.

Mr Flowers is investigating electric trucks through a project called “De-carbonising the Freight Task” and wants to bring equipment similar to Sweden’s electric heavy vehicles to Australia. “Our industry is super fortunate because 90 per cent of the haulage requirement is less than 100 kilometres lead distance,” Mr Flowers said. “It’s the perfect application.”

Battery Limitations and Infrastructure Costs Hinder Early Adopters

Despite interest in fuel savings, early adopters have encountered major limitations with current battery technology and infrastructure. Nearby, Fennell Forestry converted an existing diesel prime mover through Janus but found the vehicle fell short of its quoted range. “We were quoted about 400 kilometres on a battery cycle. We consistently got in the 200 kilometres,” owner Wendy Fennell said.

High charging infrastructure costs and power network fees ultimately forced Fennell Forestry to halt the experiment and stick with diesel trucks. “Economically it wasn’t comparable to a diesel … and my customer doesn’t get paid extra for producing a product with a zero emission truck, so they can’t afford to pay a premium for their transport,” Ms Fennell said.

Elli Irannezhad, an associate professor of transport at the University of New South Wales, said that a lack of charging infrastructure discourages operators from investing. “There’s less than 1 per cent of battery electric trucks in the market operating on our roads, which actually makes the business case for building the charging infrastructure also very difficult,” Dr Irannezhad said.

Public Road Approvals Still Pending for Prototype

Battery weight presents another challenge, particularly for agricultural operators who rely on maximizing every tonne of freight. Dr Irannezhad said that consistent decarbonisation policies and long-term incentives remain critical for the sector, pointing to Scandinavian countries and Germany as models of accelerated adoption.

While the federal government has provided grants for vehicle trials and charging infrastructure alongside a $400 million regulatory reform package, VE Motion’s battery-powered trailers are still awaiting public road approvals. Testing has remained confined to company grounds and a private quarry while Mr Panos and Mr Bussenschutt work through the necessary paperwork.

The units are expected to cost between $200,000 and $400,000, requiring high initial costs for an industry operating under tight financial pressure. “Australia leads in heavy vehicles, and we should be leading the world in this space,” Mr Panos said.

Frequently Asked Questions

How much diesel reduction do the VE Motion trailers target?
The developers are targeting a 50 per cent reduction in diesel usage by utilizing an extra 400 horsepower from the trailer’s battery system to handle more than half of the vehicle’s workload.

What is the expected price range for the electric trailers?
The price for the newly developed battery-powered trailers is expected to range from $200,000 to $400,000.

Where are VE Motion manufacturing the electric trailers?
The co-founders purchased an established trailer manufacturing business located at Murray Bridge in South Australia.

Fennell Forestry stopped using its converted electric prime mover because the vehicle achieved a 200-kilometre range instead of the quoted 400 kilometres, and the economics failed to match diesel operations amid high charging and infrastructure network fees.

Evaluation has thus far been restricted to a private quarry and corporate property, as the duo navigate the permissions required for highway access.