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."
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."