By Jonathan Smart, dispute resolution and litigation partner and sector co-lead for mobility, logistics and manufacturing at Shoosmiths LLP The transition to electric vans and fleet vehicles is
By Jonathan Smart, dispute resolution and litigation partner and sector co-lead for mobility, logistics and manufacturing at Shoosmiths LLP
The transition to electric vans and fleet vehicles is moving decisively beyond its early-adoption phase. What was once characterised by pilot schemes, limited depot electrification and cautious experimentation is now evolving into a more complex phase of scaling deployment. However, the challenge now is far harder: scaling electrification across large commercial fleets in a way that is operationally reliable, commercially viable and legally robust.
Recent developments suggest the market may be approaching a turning point. New integrated charging and energy models, greater involvement from private capital and clearer regulatory signals are beginning to align. For fleet operators, logistics providers and their advisers, the question is no longer whether electrification will happen, but when to make the leap.
One of the clearest changes in the market is the move away from seeing charging infrastructure as a standalone problem. Instead, charging, energy procurement, payments and data are increasingly being packaged into integrated solutions.
This approach was highlighted recently by the partnership between US-listed payments group Corpay and UK charging developer Voltempo, aimed at building the largest depot based electric truck charging network in the UK. The proposition goes beyond installing chargers. By linking charging infrastructure with electricity supply contracts and fleet payments, the model offers cost certainty and improved economics for operators, including reported reductions in total cost of ownership compared with diesel vehicles.
For fleet operators, this marks an important shift. Historically, the biggest barriers have been volatile energy prices, complex grid connection processes and the risk of underutilised assets. Integrated models allow operators to share capacity, smooth demand and better match long-term power procurement with fleet usage. In practical terms, charging infrastructure starts to look less like sunk cost and more like strategic energy infrastructure.
Public funding remains important, but it is increasingly clear that government support alone will not deliver fleet electrification at the pace required. The UK government’s £1bn programme to support zero-emission trucks, vans and depot-based charging is a welcome intervention, helping to reduce upfront vehicle and infrastructure costs. However, funding does not remove the complexity of planning, grid access or long-term contractual risk.
This is where private capital and partnerships are playing a growing role. Energy developers, infrastructure funds and fleet service providers are increasingly willing to take on development and operational risk, provided projects are structured correctly. Models involving private wire networks, shared grid connections and onsite battery storage are becoming more common, particularly where grid capacity is constrained.
For fleet operators, these partnerships can reduce the burden of capital expenditure and accelerate deployment timelines. However, they also introduce new contractual and operational dependencies that require careful legal and commercial structuring.
Despite strong momentum, fleet electrification remains commercially challenging. Total-cost-of-ownership parity with diesel is improving but is still highly dependent on usage patterns, energy pricing and utilisation rates. Key risks for operators include:
Mitigating these risks requires a more sophisticated approach to contracting, procurement and infrastructure planning than has traditionally been seen in fleet management.
Fleet electrification does not sit in isolation. It forms part of the UK’s broader strategy for freight decarbonisation, including the transition to electric and zero-emission HGVs.
Regulatory timelines are tightening. New lorries under 26 tonnes must be zero-emission by 2035, with heavier, long-distance vehicles following by 2040. Despite this, uptake remains low, with electric trucks accounting for a small share of the market. This gap between ambition and delivery highlights the scale of the challenge.
Charging infrastructure is central to closing that gap. Without reliable, high capacity depot and corridor charging, operators cannot commit fleets at scale. Encouragingly, government backed projects and private sector initiatives are beginning to focus on heavy vehicle needs rather than adapting passenger EV models.
The transition from early adoption to scaled deployment is where many electrification programmes will succeed or fail. The technology is improving, funding mechanisms are evolving and private capital is increasingly engaged. For fleet operators, success will depend on early planning, realistic assessment of infrastructure constraints and careful structuring of commercial arrangements. For logistics providers, electrification is becoming a competitive issue, influencing customer relationships and supply chain resilience.
For all parties, the legal and regulatory framework matters. Electrification projects sit at the intersection of transport, energy, property and regulation. Getting the structure right at the outset can unlock value and reduce risk; getting it wrong can delay projects and erode the business case.
