ICYMI: AEC’s ProMat 2025 Discussion Panel Overview
At ProMat 2025 the Advanced Energy Council discussed how electrification adoption continues to grow in the material handling industry. And while the council has seen significant strides in the last decade, there are still big steps – and a few hurdles – for businesses interested in electrification to navigate. To provide attendees with the most current electrification industry insights, here are AEC members and advanced energy experts Michael Galyen of Concentric, Damon Hosmer of Raymand Corp, and JF Marchand of UgoWork. Panel moderated by Chris Watson of ICF International.
What’s pushing the adoption of advanced energy technology in the material handling industry?
Panelists cited a few reasons, such corporations making long-term commitments to carbon neutrality and sustainability. However, all agreed the most important adoption drivers currently are the industry’s significant technological advancements leading to higher efficiency and lower costs in applications.
“When we consider the economic viability of lithium today,” began Galyen, “compared to what it was 10, 15 years ago, a battery pack might have cost $1200 a kilowatt hour. Today it’s $125 a kilowatt hour in the electric vehicle space… In that same time frame, energy density has more than tripled in lithium technology as well.”
Hosmer noted that in the forklift space, the integration of vehicle platforms meant that power trains are now optimized for alternative energies. However, he added that businesses are also focusing on energy consumption and alternatives both inside and outside their facilities. “As networks continue to grow in the IOT space, infrastructure supporting these advanced systems outside of the fleet pieces are driving the conversations we’re having today.”
As a battery manufacturer, Marchand also noted that battery technology improvements have driven interest from his company’s customers. “One of (our) main drivers remains solving problems for customers and new technology is now raising the bar in terms of performance, in terms of possibilities, so that companies improve in their operation(s).”
So many battery chemistries – which one works best?
With so many different battery/energy chemistries – lithium-ion, hydrogen fuel cells, iron phosphate, sodium ion, solid state, etc. – it’s difficult for companies to know not only how those chemistries work, but which one will work best. The panelists agreed that the best way for companies to navigate the different chemistries was to understand their material handling needs, requirements, and goals first.
“There’s no silver bullet,” said Galyen. “Every application is going to have a different requirement, and one technology may fit better in one application than another.”
Hosmer expanded on that by stating that a company’s application is what dictates the chemistry. “We like to not play the chemistry war. There’s a multitude of options. Even hydrogen fuel cells can be an option when you quantify consumption economics.”
Having said that, Galyen offered that some chemistry technologies are advancing faster than others, which is leading to faster adoption. He expects 40 percent of new batteries deployed in the industry over the next few years will be lithium technology, however, he reminded everyone that even within lithium, several different chemistries are available. “I call them flavors,” he said listing all the different chemistries. “The predominant drivers in (battery) chemistry (currently) are lithium iron phosphate and nickel manganese cobalt.”
He also believed that other battery chemistries under development, like solid state and sodium ion, are five to six years behind where lithium is today. However, because of industry research and funding, he expected those chemistries will continue to mature making them more viable in the future.
What are the geopolitical risks for advanced energy technologies?
“I think the biggest thing to consider is almost 80 percent of all lithium cells produced today are from China,” answered Galyen. While he noted that many international manufacturers make high quality lithium batteries, the U.S. will still have to deal with China’s presence. “I don’t see anybody displacing China anytime soon. That’s because they have such a vertical stack, not only in the processing of raw materials, but in the critical mineral rights around the globe.” He added, “Their capabilities make quality products … I think for the world to realize the benefit of lithium technology, it requires cooperative development globally.”
“We’re being challenged,” said Hosmer, “by many of our end users today to optimize the supply chain and look at ways to mitigate potential tariffs and other byproducts of the condition of the world at the moment. We’re starting to see a lot of that top quality Chinese cell technology potentially transferring here domestically through licensing agreements with automotive companies … I think it creates a unique opportunity to take advantage of those automotive technologies and not only look at the battery cell, but other components coming from there that are extremely valuable to optimize platforms.”
Adopting advanced energy is a long-term project, not a quick fix. How do manufacturers guide their customers through a lengthy process?
Marchand said it was important for both manufacturers and their clients to remember that changing energy technologies is more than just a project: It’s a transition.
“It’s more of a partnership type of relationship rather than a vendor relationship,” noted Marchand.
He added that it’s also a transition that not only changes a facility physically, it significantly affects the humans in that facility too. “The charging patterns are not the same. Charging speed is different. There’s no handling of batteries for example. It changes (people’s) habits to go from one charge per day to going to opportunity charging. There’s training of the operators, but also the managers and all those who interact with the battery.”
How does AI affect electrification’s future?
Marchand said one area that showed promise was using AI to predict the behavior of facility assets. “Data has been collected for many years now so there’s trend analysis that can be done.” He said this data will allow operators to evaluate equipment and make decisions on performance, maintenance, and service before it affects facility operations. “AI can provide you with possibilities or insights that will drive some profitability in your operations.”
“As a vehicle OEM,” Hosmer noted, “I look at, how do we apply this machine learning with the control architecture of the vehicles? How do we create a path forward that allows you to optimize and tune the vehicle based on utilization on a day-to-day basis? The machine leaning models I’m seeing here are pretty sophisticated and get me excited to think about how I can challenge our engineering teams to advancing those vehicle platforms.”
“I still don’t think I can fathom all the ways in which AI will affect the industry,” said Galyen. “I think AI is going to increase the rate at which manufacturing and development processes occur … AI is going to change the landscape that we operate in.”
To see the full AEC panel discussion, attendees can use their ProMat login to view this or any other ProMat panel they may have missed at the show. Visit the MHI ProMat website to learn more.
For more information about the Advanced Energy Council: mhi.org/aec
For further articles from the Advanced Energy Council:
Second Acts: How Used Lithium-ion Batteries Can Continue Performing in Your Operations
Recalculating: Including Productivity Gains in Total Cost of Ownership
Charging Forward: What’s Next in Advanced Energy
What Is a Battery Passport? A Ticket to Lithium-ion Battery Transparency
ROI of Energy Sources: Automation
Advanced Energy Solutions Deliver ROI
Achieving ROI with Advanced Power Sources
