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."
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."