Batteries sit at the center of the whole "electric shift" in material handling. Improving battery technology has made it possible for us to buy and use entire fleets of electric-powered equipment.

What's the battery industry (and the electric equipment using them) look like now? Will the tech keep improving? Does it face any challenges?

Here's what we know.

Electric Use is Growing Fast

10 years ago, you'd see sales of new forklifts going between 65% LP and 35% electric. Nowadays it's close to 55% LP/45% electric. 

That's a major change in sales, shifting from LP to electric. According to Forklift Group sales team members, electric sales continue to pick up.

Why? Because businesses see better ROI with electrics. The ROI comes in two forms: longer-lasting batteries, and lower maintenance costs.

Lithium-ion batteries beat lead-acid batteries on every level. No chemical top-ups. No toxic materials. Twenty-four hours of operation on one charge is now possible. They’ll also last 8-10 years (or 3,000-5,000 charge cycles), which is 2-3 times longer than lead-acid lifespans.

Maintenance Costs: Electric forklifts have lower maintenance costs in the long term.

Electrics do cost more than LP forklifts, but the trade-off comes in the form of lower fuel costs (electricity) and a lower maintenance profile.

Here's an example. Say you had a preventative maintenance package for one LP forklift and one electric forklift. Same year, same capacity.

LP forklifts contain more parts subject to wear & tear – filters, hoses, etc. Electric forklifts don't have the same architecture, which reduces the number of parts subject to wear.

As a result...

Maintenance Cost on LP Forklift: $350/month

Maintenance Cost on Electric Forklift: $225/month

(These numbers are estimates.)

For the same performance, you save about 35% on maintenance with an electric. Spread that out over a fleet and you're getting some serious cost savings!

Who's Buying Electric Forklifts?

The demand for electrics isn't even across all industries. Forklifts Group often sees repeat business from 3PLs, clean warehouses, distribution centers, and food/grocery.

Other industries, such as metal transportation, don't often buy electrics. The same is true for facilities with a lot of outdoor operations.

Why? It's due to an old, lingering public perception. Electric forklift batteries (and thus electric forklifts) can't sustain activity outdoors.

Is this still true today? No, it's not, due to improvements in lithium-ion output and thermal management. Older lead-acid batteries could overheat in a few hours of sunlight. Well-designed lithium-ion batteries will keep on going.

Since electric material handling equipment is "on a sustained growth trajectory, expanding from $6.96 billion in 2024 to $12.3 billion by 2033," we believe this old perception will soon fall away.

But we have proof it's no longer true. We'll share the proof in just a moment.

What Companies are Buying

Note that last quote saying, "electric material handling equipment" not "electric forklifts." While electric forklifts are the vast majority of new electric purchases, they're not the whole.

We're also seeing expansion in the automation sphere. New systems such as AS/RS (Automated Storage & Retrieval Systems), AGVs (automatic guided vehicles), conveyor systems, AMRs (autonomous mobile robots) change the whole distribution landscape.

They also expand the need for electric batteries. Some for primary power, some as emergency backups.

(See our partner Vertex for help with automation systems.)

The Challenge Facing Electric Adoption

Where does this leave the electric-adoption trend? In great shape, with one concern – battery supply.

Lithium is in short supply, and as you can see, the demand is growing fast. According to Investing News Network, lithium production is growing, but not fast enough to meet global demand!

Accordingly, prices for lithium (and in turn lithium-ion batteries) will rise this year and next. This will likely reflect in new forklift pricing going forward.

What about recycling? Can you recycle ‘dead’ lithium-ion forklift batteries? Yes, but it requires a specialist recycling facility. Ask Forklifts Group for help locating a recycler if you have old electric forklift batteries.

The Future is Electric, for All Capacities

Remember the proof supporting outdoor-operating electric forklift performance? Here it is. 

Kalmar just released electric versions for their medium forklift sizes (9-18 ton capacities). Yes, that Kalmar – the manufacturer famous for its big forklifts, used the world over in ports, manufacturing, and mega-scale construction projects.

They now make electric forklifts.

They're even quoted as saying their new electric forklifts will work for outdoor industries like forestry & logistics.

How’s that for a vote of confidence in electric battery tech?

The Shift to Electric Will Keep Going…Now’s a Good Time to Join

If you're considering electric forklifts, now is a good time to buy, as manufacturer prices may go up next year. The battery technology continues to evolve, but demand keeps growing too.

How has your experience been with electric material handling equipment? Please share your thoughts below.

Until next month!
-The Forklifts Group Team

Deal of the Month

2023 Doosan BC18 Electric Forklift – Only $36,298

For our September Deal, we’re offering a reliable electric forklift with plenty of maneuverability. This is a Doosan BC18 2023 model.

The BC18 is a 4-wheel sit-down forklift, with a 3,500# capacity. It uses a 36-volt battery, making it quick to charge and long-lasting. These Doosans are great for working with drive-in rack and tighter spaces.

We only have 2 BC18s in our Fresno location, and one of them only has 1 hour on it! Both models are serviced and ready to go. Pick one up for only $36,298.

To get this Deal, call Forklifts Group at 800-464-3225 and ask for the September Deal of the Month.