Forklift Battery Market Trends

Growth Drivers

• Development of next-generation battery technologies: The innovation of advanced battery technologies, including lithium-ion batteries, is a major growth driver. These batteries have higher energy density, longer life cycles, and faster charging times than traditional lead-acid batteries. In February 2025, BSLBATT Battery emphasized its role in supplying the material handling industry with lithium-ion batteries with a focus on improving efficiency and maintaining environmentally friendly warehouse operations. All these innovations are making electric forklifts more feasible and appealing to multiple applications. Ongoing innovation in battery technology will continue to fuel forklift battery market growth. Furthermore, with declining costs for lithium-ion batteries, these batteries are becoming accessible to a wider range of users.
• Strategic partnerships and collaborations: Partnerships between OEMs of forklifts and manufacturers of batteries allow advanced battery solutions to be integrated into the design of the forklift. In September 2024, Flux Power launched a joint venture with a prominent OEM of forklifts to introduce a private label battery program so that the OEM can sell Flux's UL Type EE-certified lithium-ion batteries with its own branding. Such joint ventures are promoting the use of advanced battery technology in the case of forklifts. These joint ventures also simplify the supply chain and promote higher compatibility of batteries with forklifts. In addition to that, joint ventures promote innovation and speed up the process involving customized battery solutions.
• Government support and incentives: Government incentives and policies play a significant role in the promotion of the use of electric forklifts and, subsequently, the demand for batteries in them. In March 2025, the BlueOval SK joint venture between Ford Motor and SK On from South Korea received a USD 9.63 billion loan from the U.S. Department of Energy to fund the establishment of three new battery production facilities in Tennessee and Kentucky. These kinds of large investments reflect the government's determination to encourage the battery sector. These policies not only enhance domestic production of batteries but also generate employment and stimulate growth in the economy. Other policies to curb carbon emissions are also pushing companies to use electric forklifts.

Challenges

• Supply chain restraints: Supply chain challenges arise from the sudden growth in demand for lithium-ion batteries, with shortages in raw materials and manufacturing capacity.  Although such investment tries to ease supply restraints, the industry continues to contend with challenges in fulfilling growing demand. Such restraints may result in longer lead times and costs, compromising the general use of electric forklifts. Further, geopolitical tensions and trade policies may also affect the supply chain stability.
• Recycling and environmental concerns: Disposal and recycling of forklift batteries, especially of the lead-acid variety, present environmental-related problems. Even with such efforts, the industry requires more comprehensive recycling facilities to meet the growing number of used batteries. Improper disposal also contributes to contamination of the environment and poses health risks. Thus, improving recycling methods and promoting sound disposal become critical to achieving growth in a sustainable manner.