IKEA Canada Partners With Second Closet and Lion Electric for Last Mile Delivery

IKEA Canada takes bold step towards 100% zero-emission delivery by 2025

Northern Genesis Acquisition Corp. announces that its proposed business combination partner, The Lion Electric Company (Lion), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, today announced that the company has received a purchase order from IKEA Canada’s partner, technology-enabled logistics and last mile delivery provider Second Closet, for 15 Lion6 heavy-duty zero-emission trucks. Second Closet will begin integrating zero-emission trucks into its fleet for IKEA home deliveries in several markets across Canada.

The IKEA and Second Closet co-branded five tonne EV trucks that will service last mile deliveries for IKEA locations in Boucherville, QC, Etobicoke, ON, Richmond, BC are scheduled to hit the streets in fall 2021. This will enable IKEA to achieve 20% of its ambitious zero emission delivery goals. The retailer is committed to reaching its 2030 goal to become a circular and climate positive business by reducing more greenhouse gas emissions than the IKEA value chain emits while growing the IKEA business at the same time.

The impacts of the global pandemic are moving consumer purchases online and thereby increasing the demand for home deliveries. It also increases the challenge this poses in terms of pollution, congestion, and noise levels in our cities. In 2020, IKEA Canada completed over 500,000 home deliveries, a 30% increase from 2019.

“Electrifying our last mile delivery service is an important step in our journey to become climate positive by 2030, especially with the rapid acceleration of our online business over the past year,” said Michael Ward, CEO & Chief Sustainability Officer, IKEA Canada. “We are pleased to work with Second Closet and Lion Electric, two great Canadian innovators, to support us in meeting our customers with people and planet in mind.”

IKEA Canada has been named amongst Canada’s greenest employers for more than a decade and remains committed to its leadership in sustainability. Further to its current zero-emission delivery efforts, IKEA Canada has also achieved the unique status of producing four times the energy that the company’s operations and facilities consume, thanks to renewable energy produced by its wind farms and rooftop solar panels. The company widely supports electrification of transportation, providing electric vehicle chargers at all 14 IKEA stores across Canada with a goal of halving relative emissions from employees and customers by 2030.

“Lion is delighted to have been chosen as a key partner in IKEA Canada’s incredibly ambitious goal of decarbonizing home delivery by 2025. We believe this will be the first deployment of all-electric delivery trucks at scale in Canada, serving as an example for what’s possible with electrified fleets today and setting up IKEA Canada and Second Closet for larger deployments in the near future,” said Marc Bedard, CEO and Founder of Lion.

All of Lion’s vehicles are purpose-built for electric propulsion from the ground up, and are manufactured at Lion’s North American facility, which has a current capacity to produce approximately 2,500 electric trucks per year. Over the last decade, Lion has established itself as a leader in the all-electric heavy-duty vehicle industry, having delivered over 300 all-electric heavy-duty vehicles in North America with over 6 million miles driven since 2016.