(Reuters) - United Parcel Service Inc (N:UPS) said it would partner with a Los Angeles-based company to develop an electric medium-duty delivery truck, as the package delivery company expands its fleet of alternative-fuel vehicles.
The truck, developed jointly with electric commercial vehicle startup Thor Trucks Inc, is expected to be deployed later this year, UPS said on Tuesday.
The truck will have a driving range of about 100 miles, with lightweight battery designed and built by Thor.
UPS will test the class-6 delivery truck for the first six months, including its battery capacity and technical integration, after which UPS may buy more of these trucks.
This will be a part of UPS's plan of about 9,300 low-emission vehicles, including all-electric, hybrid electric and CNG, to understand which technology works best for some routes.
UPS has partnered with Workhorse Group Inc (O:WKHS) to build an all-new electric delivery van and it also has pre-ordered 125 electric semi-trucks from Tesla Inc (O:TSLA).
Vehicle manufacturers such as Daimler AG (DE:DAIGn) and Navistar International Corp (N:NAV), and a slew of new entrants, are racing to overcome the challenges of substituting batteries for diesel engines in delivery vehicles as regulators crack down on carbon dioxide and soot pollution.