Interest in lithium-ion batteries for material handling equipment is growing. Will they be limited to niche applications, or could they eventually replace lead-acid batteries?
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
The first lithium-ion battery-powered lift truck made its debut in Japan in 2008. Pallet jacks and automated guided vehicles (AGVs) powered by lithium-ion batteries have been scooting around European DCs for a few years now. But here in North America, we're a little late to the party. Interest in lithium-ion batteries and battery management systems may be high, but sales remain slow.
Proponents of this energy-dense, highly efficient power source say that's about to change. For the past couple of years, manufacturers and designers of batteries, chargers, and lift trucks have been testing lithium-ion (li-ion, for short) batteries, and some are now commercially available here. While it's generally agreed that li-ion batteries are very promising for material handling applications, how much of the market they'll eventually capture is far from certain.
KUDOS ...
One reason for the growing interest in li-ion batteries is that they have a very high energy density—about triple the capacity of a similar lead-acid battery, says Arlan Purdy, product manager of energy storage systems for lift truck manufacturer The Raymond Corp. They're also attractive because they do not require any watering and give off no gases, he says. And, unlike some other alternative power sources, he adds, lithium-ion batteries "have a little bit of a convenience factor because they use the same electric grid that people are used to"; in other words, the charging process will already be familiar to operators. Lithium-ion batteries are much smaller and lighter than their lead-acid counterparts—perhaps lithium-ion's greatest appeal, notes Mark Tomaszewski, manager, emerging technologies, for the battery maker EnerSys.
In addition, li-ion batteries can be opportunity-charged during operator breaks without adversely affecting battery life, have much longer run times than their lead-acid counterparts, and can be charged quickly, says Steve Dues, vice president at lift truck maker Crown Equipment Corp. That means there is no need to swap out batteries during a shift—or to remove a battery at all, even in a 24/7 operation.
How fast can li-ion batteries be charged? Much depends on the particular cHemiätry of the material inside, but Trineuron, a Belgian supplier of batteries for AGVs, among other applications, claims that the nano lithium-titanate-oxide technology it has adapted from the energy-storage and automotive markets allows for a full recharge in less than nine minutes, and that total time on charge for AGVs with any type of li-ion battery typically is less than one hour a day. On its website, the company cites the example of a Belgian food distributor that put 30 Jungheinrich AGVs with li-ion batteries to work in a new warehouse and projects savings of 1 million euros (approximately US$1.1 million) due to shorter charging times and lower electricity costs.
Food and beverage distributors as well as grocery industry players are particularly interested in li-ion batteries because they maintain their capacity in cold temperatures better than conventional lead-acid batteries do, says Purdy. The Raymond Corp. currently is partnering with the New York State Energy Research and Development Authority (NYSERDA) to test lithium-ion batteries in a cold storage environment. They have performed well so far, but more research is required, he says.
... AND CONCERNS
All this may sound too good to be true. There must be a catch, right? Indeed there is—there are several, in fact.
One concern is that as demand for mobile devices and electric and hybrid vehicles increases, there could be more competition for the batteries' raw material. Lithium is recovered from brine in saline lakes and flats or extracted from hard rock using open-pit or underground mining methods. The main producing areas are Chile, Argentina, Australia, China, and Zimbabwe, and to a lesser extent, Nevada. There's no immediate danger of a shortage, but any time a market becomes dependent on a material that originates in a limited number of remote areas, there's reason for caution.
Once extracted, the lithium is combined with various minerals and chemicals to create the material used in batteries. Which "recipe" is used depends on the battery application. That has an impact on safety, a major consideration for battery users. Everyone's heard about overheated or damaged laptop and cell phone batteries bursting into flames or exploding, a phenomenon known as "thermal runaway." But lift truck batteries are different from the ones used in consumer electronics, and reputable battery manufacturers and assemblers are diligent about the safety of their products. For example, Flux Power, a Vista, Calif.-based provider of li-ion battery packs, has said that the lithium iron phosphate it uses is not prone to thermal runaway, and that its battery management system will shut down the battery pack if the sensors in any individual cell detect temperatures outside a prescribed range. Similarly, Chicago-based AllCell Technologies incorporates a proprietary passive thermal management system into its battery packs. That system uses a graphite composite material to surround individual lithium-ion cells, physically isolating them and absorbing and conducting heat away from them to prevent fire or damage.
In fact, an appropriately designed battery management system is a necessity when lithium ion is involved. In a discussion about safety on its website, Denmark's Lithium Balance says that li-ion batteries do not tolerate overcharging and that safe operation requires constant monitoring to protect the battery pack from excessive current flow, as well as a switching circuit to connect and disconnect the battery from the electrical load. A battery management system should provide these controls, it says.
Because lithium-ion batteries have a sharp "shut-off," operators won't see the performance decline they experience with lead-acid batteries, says Raymond's Purdy. They'll need the kind of alerts that control systems on lithium-ion batteries in consumer applications provide, but lift trucks designed for traditional batteries "are not set up to listen to that kind of communication," he observes. Raymond is devoting considerable resources to developing and testing the communication interface between the truck and li-ion batteries, with the hope that it will become a public standard, he says. Another potential drawback of li-ion batteries when used in industrial lift trucks is the significant difference in weight between lithium-ion units and their lead-acid counterparts. While lightness can be an advantage at times—such as in the automotive industry—many lift trucks depend on heavy lead-acid batteries to counterbalance load and operator weights, says Tomaszewski of EnerSys. If the manufacturer has to add a heavy weight to the truck in addition to the li-ion battery and its compartment, it "could potentially compromise the economics of truck design and manufacturing," he says. For that reason, lithium-ion batteries have largely been relegated to pallet trucks and AGVs. Lithium-ion batteries also come with a hefty price tag, the single biggest factor holding back the adoption of lithium-ion in material handling applications. An often-quoted 2013 report by Navigant Research estimated that li-ion batteries cost around $400 to $700 per kilowatt-hour, compared with $150 to $400/kwh for lead-acid batteries. Prices fluctuate, but currently, price differentials are "in the range of four to five times the cost of lead-acid when calculated on a watt-per-hour basis," estimates Steve Dues of Crown. Proponents, however, counter that li-ion actually compares quite favorably on total lifetime cost, owing to its energy density, maintenance-free characteristics, low electricity requirements, high productivity, and a lifespan that's three to five times that of comparable lead-acid batteries.
Regardless of the potential benefits, lithium-ion will go nowhere unless the lift truck and AGV manufacturers approve their use in individual vehicle models sold in specific markets. That's a process that is necessarily rigorous and time-consuming because both customer safety and product integrity are at stake. Toyota, for instance, offers several lithium-ion battery products in Europe but has approved just one in North America. Scott Carlin, electric product planning and product support manager for Toyota Material Handling, U.S.A. Inc., says his company is "working to verify that the suppliers and their products meet safety standards and testing protocols" for equipment sold here.
GAINING CONVERTS
Navigant Research's 2013 report forecasts that revenues from the sale of new electric-power technologies for forklifts in North America, including certain types of fuel cells, fast chargers, and li-ion batteries, will grow to $556 million in 2020 from $121 million in 2013. Lithium-ion is expected to make up just a sliver of that total market, perhaps 4 percent. Still, evidence abounds that equipment makers and their customers see a future in this technology. Here are a few examples:
Yale Materials Handling Corp. now offers a walkie pallet truck with the first commercially available li-ion battery pack recognized by Underwriters Laboratory (UL) in the forklift industry. The lighter, smaller battery allows for a shorter, more maneuverable truck and is backed by a five-year warranty.
Flux Power introduced a beta version of its 500Ahe LiFT Pack battery for end-rider pallet jacks at the 2015 ProMat show. The company says Toyota and Crown Equipment have approved its battery packs for use in certain pallet jack models and that it has lined up battery distributors and forklift dealers to sell its products. The publicly traded company reports growing quarterly sales but is still in the red.
Earlier this year, the snack maker Mondelez bought li-ion batteries and battery management systems from Electrovaya for its Toronto DC, and the Norwegian wholesaler Europris reported that in a six-month trial, batteries from GNB Industrial Power "significantly" lowered its forklift fleet operating costs.
A growing number of vendors, including Storage Battery Systems (SBS) and GS Yuasa, have added li-ion batteries for AGVs to their product lineups.
Applied Energy Solutions reports that several major retailers are testing its Superion lithium-ion battery and charger pack, which has won two MHI innovation awards.
When asked where the market for lithium-ion batteries will be five years from now, the experts we consulted for this article were cautious in their assessments.
Purdy believes considerably more research and testing will be required to ensure that the batteries—both current and future designs—are properly matched to specific lift truck applications. But if prices come down, he expects that within five years, sales will be "at least equal to fuel cells."
Tomaszewski, meanwhile, says EnerSys sees possibilities in lithium-ion, but right now the company is using it in nonmotive applications only. "Until the cost comes down, we will consider it to be an emerging technology," he says.
In Carlin's opinion, the fact that forklift manufacturers are hiring employees specifically to support lithium-ion and other new technologies suggests that they believe acceptance will grow. "I would expect that over the next five years, testing will continue, and as people become more confident in the overall benefits of the newer technologies, lithium-ion will be embraced as a major alternative to lead-acid," he says.
Steve Dues of Crown agrees that alternative power sources will gain market share as they prove they can solve customers' problems at a competitive cost. But don't count lead-acid batteries out just yet, he says. The hybridization of lead-acid with other technologies like super capacitors, together with improved battery management solutions, could deliver meaningful power and efficiency gains. Lithium-ion may be getting some well-deserved attention, but solutions involving traditional lead-acid batteries, he predicts, "are what will be applicable to the significant majority of the forklift market."
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.