The major factors responsible for the growth of the global lithium market are the increasing number of applications in battery-powered equipment and the need for cleaner energy sources. Increased demand is created by various industries, particularly the electric vehicle/auto industry and the energy storage system industry. Ongoing research and innovations in lithium applications are expected to provide opportunities for further growth. Industrial lithium batteries have been gaining popularity in the USA over the last decade. Lithium power packs are used across many industries including material-handling equipment, defense, and aerospace; at medical, telecom, and data centers; for marine and power storage applications; and in heavy mining and construction equipment.

This review will cover one segment of this big market: batteries for material-handling equipment (MHE) like forklifts, lift trucks, and pallet jacks.

MHE lithium battery market segment

The segment of industrial batteries for MHE includes various types of forklifts and lift trucks, and some adjacent segments, like airport ground support equipment (GSE), industrial cleaning equipment (sweepers and scrubbers), tugs, personnel carriers, etc.

The MHE market segment is very different from other lithium battery applications like automotive, public transportation, and other on- and off-highway EVs.

Forklifts often have to withstand high vibrationdue to the widespread use of cushion tires. These demand a more rigid design than pneumatic tires.

MHE is employed in multi-shift operationsspanning 18-20 hours daily, often in extreme ambient temperatures(very hot in some cases and very cold inside coolers and freezers).

Forklifts rarely leave facilities with easy access to power and charging stations.

A high level of customizationis required for numerous unique forklift types, resulting in a low production volume for each individual battery model.

The still-low adoption rate of superior lithium technology is the reason why many MHE dealers and maintenance companies do not offer lithium battery service. This is why a battery manufacturer’s own service networkis so important in this segment.

Size and growth of the lithium forklift battery market

According to the Industrial Truck Association(ITA), around 65% of lift trucks sold today are electric (the rest are internal combustion engine-powered). In other words, two-thirds of all new material handling equipment is battery-powered.

There is no consensus today as to what share lithium technology has already gained from the incumbent lead-acid technology in the US and Canada. Estimates vary between 7% and 10% of the total number of the new industrial batteries sold, growing from zero in a mere 5-6 years.

The benefits of lithium vs. lead-acid batteries have been tested and proven by major companies across all industries with material handling operations: logistics and 3PL, retail, manufacturing, paper and packaging, metals, lumber, food and beverage, cold storage, medical supplies distribution, you name it. Industry experts are speculating about the growth rate over the next few years (estimated CAGR 27%),but all agree—the adoption of lithium will continue to accelerate, similarly to what we see in the passenger EV market (enabled by similar lithium technology). By 2028, the lithium segment may constitute 48% of all new forklift batteries.

Lead-acid technology still drives forklift engineering

Lead-acid battery technology for electric forklifts is over 100 years old. No wonder electric-powered forklifts were (and still are) built around lead-acid batteries, which determined the format of a power pack and the whole design of a lift truck. Lead-acid technology’s key characteristics are the low voltage (24–48V), high current, and the massive weight of the battery, and in most cases, the latter is used as part of the counterweight to balance the load on the forks.