The Future of Battery Technology for Industrial Vehicles

This is a summary from the panel discussion of the same title by experts from Delta-Q Technologies, Discover Energy Systems, Flux Power, and Trojan Battery Company, at the Future of Electrification 2024 conference. Watch the full session here:

The panel discussion began by underscoring the growing complexity of the industrial vehicle battery market. As an increasing number of vendors market their products, OEMs can cut through the noise by understanding specific operational requirements and electrification goals when selecting battery technologies. With an array of options available, from Lithium-Iron Phosphate (LFP) to Lithium Titanate (LTO) and emerging chemistries such as Sodium-Ion, battery choice must align with specific use cases and industry demands.

Experts on the panel noted several examples. LFP batteries are noted for their safety and longevity, making a strong comeback in the market thanks to their balanced cost performance. LTO batteries, though more expensive, offer unmatched safety features—making them ideal for applications where risk mitigation is paramount. Sodium-Ion batteries present an attractive mix of cost-effectiveness and supply chain resiliency, though lower energy density may limit realistic application.

The panel discussion next shifted toward technological innovations shaping the future of battery systems. 

Telematics advances enable better battery management through real-time data reporting to the cloud, enhancing operational efficiencies. Wireless charging technology is also making a resurgence on the electrification scene, promising to reduce the wear and tear associated with physical charging connections.

Amidst these advances, the real question boils down to commercial viability. For instance, while solid-state batteries offer higher densities and faster charging capabilities, this is not necessarily the most practical option—even for OEMs in fields such as material handling, where power demands are high.

Rather, the panel emphasized the importance of optimization. Instead of pouring resources into the absolute latest battery system and seeing marginal returns, OEMs often see best results from ensuring both battery and charger are fine-tuned for the specific application. Battery Management Systems (BMS) have come a long way over the past decade, integrating more seamlessly with vehicle systems to enhance battery reliability and lifespan. These are crucial considerations for maximizing ROI given the (comparatively) high upfront cost of an electric fleet versus internal combustion.

As far as challenges, the panel agreed infrastructure remains a significant hurdle. 

Electrified industrial vehicles continue trending to higher voltages, and simply keeping up with this increased on-site power demand can introduce new difficulties. Panelists highlighted the importance of OEMs assessing on-site power capabilities—both from a regional and industry perspective.

Panel experts cited the recent Agritechnica event as a case in point. The event’s host country, Germany, produces a significant amount of electricity, so infrastructure is much less of a factor compared to regions further behind in overall electrification, such as North America. Power requirements also vary by application; duty cycles, charging opportunities, and peak/continuous power differ greatly between applications like agriculture versus material handling. In some cases, hybrid power solutions or complete infrastructural overhauls may be necessary.

This industry-wide trend towards higher voltages carries additional logistical implications. While off-the-shelf components are always preferable, OEMs with specific needs may find that the fledgling market simply cannot meet their needs.

Relationships between OEMs and battery/charger vendors thus evolve into more collaborative arrangements. Partnerships that allow for customisation and adaptation to these needs are becoming more common, helping OEMs navigate electrification’s many complexities. These dynamics are particularly noticeable in sectors like construction, which has been slower to transition away from internal combustion engines and demands increasingly large battery sizes by nature of the work.

Carrying this thought forward, the panel’s experts emphasized that many electrification considerations revolve around tradeoffs. While advancing battery technology is pushing boundaries, those boundaries are pushing back with diminishing returns. One expert cited an OEM design with challenging restraints on physical dimensions. Meeting this demand necessitated reducing battery size by 5 millimeters—a seemingly minor tweak that upped the project price by 50%.

Questions directed at the panel regarding battery recycling opened up another discussion that well-summarized the current state of advanced battery technologies: It exists, but not yet at scale. 

Whereas markets leading electrification, such as China and Europe, already have well-established recycling processes, many regions are still working to catch up. And while impending regulations such as the European Battery Passport are promising, only time will tell what impact these initiatives will have on the broader market.

The panel summarized their key takeaways as follows: OEMs simply need to get started.

Electrification is gaining momentum, driven by technological advancements and the pressing need for sustainability. While the path forward involves navigating significant challenges—particularly in terms of infrastructure, integration, and standardization—learning your options and choosing the right suppliers are essential first steps.

Advances in battery technology are happening. However, they are happening incrementally. Rather than wait for the ‘ideal’ battery cell, building partnerships with knowledgeable vendors now establishes a foothold from which to build. OEMs are encouraged to have these conversations early and often, exploring the electrification options currently available.

As one expert stated, you may be pleasantly surprised by what’s already out there.