Bold claim: Electrifying road freight is Australia’s smartest shield for energy security, cheaper transport, and a cleaner future. And here’s the nuance most people miss: relying on imported diesel leaves our supply chains exposed to global turmoil, price swings, and geopolitical shocks. With Australia heavily dependent on road freight, and about 90% of the diesel and crude oil we use routed through a few international lanes—including roughly 30% coming via the Strait of Hormuz—any disruption can ripple into higher costs and tighter food and goods distribution. As oil price forecasts suggest potential spikes, the risk isn’t theoretical; it’s economic reality that could affect everyday life. This is the backdrop for why electrifying road freight isn’t just an environmental choice—it’s a strategic reset for national resilience.
But here’s where it gets controversial: stockpiling fuel seems like a straightforward hedging move, yet it perpetuates a brittle system built on imported hydrocarbons. An alternative approach can simultaneously bolster energy security, cut costs, shrink emissions, and reduce supply-chain risk. The answer is to electrify road freight, an option that aligns with domestic energy generation and smarter infrastructure planning.
What makes electric trucking compelling? Consider the latest demonstrations by Australian startup New Energy Transport (NET). In a record-breaking run, a 36-tonne truck covered 480 kilometers on a single charge, finishing the trip 40 minutes sooner than a diesel counterpart on steep grades. The vehicle, a Windrose electric prime mover, showcases what’s possible with high-energy efficiency, robust batteries, and skilled route planning. NET’s plan to establish a 50-truck electric depot in southwestern Sydney by mid-2026 aims to service routes to Newcastle, Wollongong, and Canberra, illustrating a tangible scale-up path.
NET’s approach is a principled rethink of road freight for the electric era: electric prime movers, fast charging, and access to low-cost renewable energy. Their modeling indicates potential reductions in overall road freight costs by more than 20%, driven by lower energy costs, simpler logistics, and resilience against fuel price volatility.
Why electrification strengthens energy security
- Australia’s heavy reliance on road freight and imported fuels creates exposure to price shocks and disrupts food and essential goods supply chains.
- About 90% of the diesel used by road transport is imported, tying trucking costs and reliability to international markets.
- In a world with rising geopolitical tensions, this dependence poses real economic and security risks.
Electrification shifts the equation by powering freight with domestically produced energy. Solar, wind, and storage—harnessed locally—can fuel freight networks, reducing vulnerability to overseas oil supply chains and refining disruptions. In other words, Australian sunshine becomes the backbone of freight power, not imported oil.
Repurposing existing assets to speed the transition
- The current diesel fleet is a valuable asset. Instead of waiting for a full fleet replacement, retrofitting existing trucks with electric drivetrains and modular battery systems can accelerate progress. For example, Janus, a central coast–based company, retrofits diesel engines with electric drivetrains, enabling battery swaps when needed. The incremental cost is often reimbursed within a year, and battery packs can be swapped in minutes, extending the useful life of serviceable vehicles while cutting emissions.
- Automation is on the horizon. Projects like Solarh2e’s collaboration with Sany aim to deploy automated battery-swap systems on mine sites, reducing downtime and maintaining high fleet utilization.
Rethinking charging infrastructure without overbuilding the grid
- A common concern is whether the grid can support large-scale charging. The answer isn’t to demand massive grid upgrades everywhere at once. Instead, charging can be designed around scalable, resilient micro-solutions.
- Australian players like Lumina and New Volt are exploring models inspired by Tesla’s Lost Hills approach: a modest grid connection supplemented by sizeable battery storage and solar PV along key freight corridors and regional locations. This strategy improves grid resilience while delivering reliable charging for trucks.
Learning from global leaders: China’s scale and its implications for Australia
- China has demonstrated how rapid, large-scale electrification can reshape transport and energy demand. Approximately 30% of new trucks sold in China are now battery electric, with diesel use falling notably. Chinese manufacturers accounted for a large share of global electric truck sales in 2024, fueling a sharp reduction in oil consumption and an expected peak in demand around 2027.
- This scale is enabled by consistent policy support and industrial deployment. Chinese firms, including CATL and BYD, have become global leaders in battery and EV technology, investing in major projects across Asia, Europe, and beyond. The takeaway for Australia is clear: strategic collaboration with China could accelerate charging networks, battery swapping, and other zero-emission transport innovations while strengthening national resilience.
The broader power system integration
- Electric trucking isn’t just quieter and cleaner; it’s a convergence of transport and electricity. A fleet of 100 heavy electric trucks with about 60 MWh of battery capacity could participate in electricity markets through bi-directional charging during peak demand and disruptions, unlocking new value streams for fleet operators and grid operators alike.
- This integration supports a more resilient, flexible energy system and creates opportunities for localized power generation and storage along freight corridors.
A strategic invitation to policymakers and industry
- Electrifying road freight offers a pathway to reimagine how Australia powers its economy. With abundant renewable resources, dense freight corridors, and a supportive policy environment, the country is well positioned to capture the benefits of electric road freight.
- If Australia is serious about energy security, the fastest and most cost-effective route isn’t expanding diesel storage or relying on vulnerable imports; it’s reducing diesel dependence altogether through electrification.
About the authors
Daniel Bleakley is Co-CEO and Co-Founder of New Energy Transport. His background spans engineering, business, and politics, and he advises on Australia’s energy transition and freight electrification.
Caroline Wang is Adjunct Fellow at the Australia–China Relations Institute and China Lead at Climate Energy Finance. She analyzes how China’s leadership in green energy technologies is reshaping global supply chains and geopolitics, drawing on legal and diplomatic experience.
Richard Neumann is Chair of the Smart Energy Council Pacific Working Group and a member of the Advisory Council of the Franco-Australian Centre for Energy Transition at Swinburne University. A former diplomat, he has deep experience in energy policy, grid integration, and hydrogen supply chains.
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