While lithium-ion battery technology has been around for decades, its use in rechargeable electric forklifts has been widely available for less than 10 years. Initially, those lithium-powered forklifts were required for high-hour, high-intensity warehouse applications, with budgets to match. Early adoption of lithium required these types of applications to justify the long ROI and the need to resolve massive pain points of electrifying with lead-acid.

In just a short time, lithium technology and manufacturing had matured, reducing the barriers to entry.  Lower acquisition costs, plus new features such as onboard charging and optimized power solutions, have now opened lithium technology to all types of applications, including smaller, lower-usage operations that previously couldn’t justify the upfront costs.  So, if you’ve considered lithium-ion before, but were turned off by a large upfront investment and long ROI times, those myths have been busted.

Myth – Lithium-ion Powered Solutions are Expensive

Many operations, such as retail stores, farms, or construction sites, rely on internal combustion engine forklifts, not necessarily because they want to, but because they haven’t been able to find a solution to electrify their operation. A key barrier to electrification has been acquisition cost. The forklift, battery, charger, and infrastructure were each a separate cost, creating a weak ROI that often took several years to reach. Internal combustion engines were the easiest option available at the time. However, gasoline costs have only continued to rise, and these trucks continue to create exhaust through facilities.  Advances in lithium-ion technology have now lowered the cost of forklifts. The price difference between internal combustion and lithium-ion battery trucks is narrowing.

Myth – Lithium-Ion Solutions are Expensive, and ROIs are Unattainable

If you investigated going electric a few years ago, the financial case to transition away from your current fleet may not have made financial sense.  Electric forklifts powered by lithium batteries came with a large premium vs. ICE, plus the need for external chargers and potential facility upgrades to support their power requirements.  If you didn’t have a 2- to 3-shift application with high usage, the ROI likely didn’t make sense.  If you haven’t looked in the last 24 months, it may be time to look again.  There have been 3 significant trends making lithium more attractive in lower-use applications:

1. Maturing technology and manufacturing: As lithium becomes more widely adopted across multiple industries, the cost of lithium per kWh continues to decrease. Closing the acquisition cost gap between lithium power forklifts and internal combustion forklifts.
2. Maturing industry: The ability to right-size and optimize the power solution to the application. An increase in application data allows lithium solutions to be tailored and optimized to the job at hand.  No more oversizing and overpaying for batteries and chargers you don’t need.
3. Flexible charging: The introduction of onboard charging solutions enables many applications to eliminate the need for large external chargers. Hours with lower usage and more hours free to charge can simply be plugged into standard 120V or 240V outlets.

These trends mean businesses no longer need to run trucks for long hours to meet their ROI. With new technology and increasing data, AEC members can provide solutions with attractive ROI in applications that only run these new forklifts a few hours a day.

“The ROI on electric forklifts shows up faster in more applications than most people expect. Between lower energy costs, reduced maintenance, and far less downtime, the numbers start compounding in your favor almost immediately,” said James Nielson, Director, Sales Enablement. “Over the life of the truck, electrics don’t just pay for themselves; they outperform every traditional model on total cost of ownership.”

Myth – Only the Largest Warehouses can use Electric Batteries

Early lithium‑ion systems were developed for high‑usage warehouses, creating a classic chicken‑and‑egg problem. Batteries and chargers were built to support demanding, around‑the‑clock operations with ample space and electrical capacity. As a result, the equipment was more expensive and required high‑powered chargers and upgraded electrical infrastructure. Smaller operations—those with lower usage or limited infrastructure—were effectively excluded.

According to AEC members, warehouses used to require over 2,500 hours per year to justify the cost of lithium-ion forklifts over internal combustion engines. That gap has closed. Now, businesses with as little as three or four hours of use per day can use lithium-ion technology and an attractive ROI. And member companies have gotten better at sizing lithium-ion battery intensity to fit each business’s needs, whether they’re large or small. This allows for more flexible solutions that are optimized for each operation

Myth –Massive Electrical Infrastructure Upgrades are Necessary

Previously, warehouses often had to upgrade their electrical systems and infrastructure to supply power to high-usage forklifts, requiring electrical panels and outlets capable of handling the power demands of fast charging in high-usage applications.

Now, as different applications begin to justify the move to lithium, the infrastructure requirements change significantly.  With the recent addition of onboard charging options, many applications can get away from large external chargers entirely and power their forklift fleets simply by plugging them into a standard 120V or 240V outlet.  This newly available feature on lithium batteries further reduces the barriers to electrifying fleets.

Myth –Lithium-ion Forklifts Can’t be Rented

One segment of the industry seeing the effects of these advancements is the forklift rental market. Previously, internal combustion engines were the only type of forklift that could be rented due to the unknowns about the businesses renting them. Would the vehicles be inside or outside? Would there be chargers on-site? If so, would they have enough power? Many of these unknowns prevented the rental of electric forklifts. With today’s flexible charging options, rental companies can offer electric forklifts to industries such as construction sites and farms, which can be plugged into ordinary power outlets or generators. Anywhere with an outlet can support equipment.  Smaller warehouses can also rent these forklifts, allowing them to try out equipment before purchasing it or use it only when they need it if the operation isn’t large enough to justify the purchase. It’s easier than ever to scale electric forklifts and tailor them to the warehouse needs instead of tailoring the warehouse to fit the needs of the forklifts.

Time to Take Another Look

If your company has considered going electric in the past or wants to make the switch now, this is the time to reach out to Advanced Energy Council members to see whether it makes sense (and dollars and cents) to switch from dirty fossil fuels to electric battery-powered forklifts.

For more information about the Advanced Energy Council: mhi.org/aec

For further articles from the Advanced Energy Council:

Lithium-ion Batteries Come Full Circle

What is Advanced Energy?

What Material Handling and Fleet Managers Need to Know: California Updates its LCFS Fuel Producer Credits Regulations

Choppy Waters Ahead: Navigating a New Wave of Tariffs

When a Battery Becomes a Razor: Using Lithium-ion Batteries in Peak Shaving Energy Strategies

ICYMI: AEC’s ProMat 2025 Discussion Panel Overview

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