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INTRO

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DEFINITIONS

Intro

On the surface, a lead acid battery may seem like the better investment than a lithium-ion forklift battery. That would be true if you only looked at the initial cost of buying a battery.

However, when prudent managers and supervisors take a deeper look at the total cost of ownership between lead acid and lithium-ion batteries, they see a far different picture.

Let's take a look at purchasing one (1) battery for a forklift and delve a little deeper into the actual numbers to see what the real cost of ownership is.

(These numbers are used as an estimate and actual prices may vary. They are only for demonstration purposes.)

The following return on investment calculation is based on a 5-year period:

If operations only look at the initial forklift battery price purchase, you would see slight savings when purchasing a lead acid forklift battery. When operating and energy costs are factored in the total, overall savings are quite significant for the lithium-ion forklift battery.

A total savings of $6.3M can be realized, per battery, over a 5-year period. If a fleet consists of 10 forklifts, that's a savings of $63M over 5 years.

More Energy Efficient With No-Water Maintenance and Increased Safety

For many managers and supervisors who are concerned with productivity, the no-water maintenance factor of lithium-ion batteries makes a switch from lead acid an easy decision.The chart below shows how much more energy efficient a lithium-ion battery pack is for each battery pack offered.

The future of the material handling industry is on a path to reduced costs and environmentally-friendly technologies.

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Definitions

Warehouse Efficiency: Maximizing space, promoting productivity, and streamlining operations are ways to create efficiency in warehouses.

Operational Efficiency: The ability of an organization to reduce waste in time, effort and materials while producing a high-quality product. This can be gained though different processes, resource utilization, inventory management, and many other things.

Forklift Battery Price: The forklift battery price isn’t the true price because you have the initial purchase price along with the operating costs and energy costs that go with the battery. Lead acid batteries have a lower upfront purchase price but in the long run have a higher cost of ownership due to the required maintenance and higher energy costs. In comparison, lithium-ion battery packs have a higher upfront price but no maintenance costs, and lower energy costs, since they are more energy efficient.

Battery Energy Efficiency: The amount of energy available to ‘do work’ relative to the amount of energy that’s put into the battery through the charger.

Diesel Emissions Reduction Act (DERA): A program that funds grants that improve air quality by reducing the amount of diesel emissions produced.

Total Cost of Ownership: Total Cost of Ownership is a common method used to evaluate the entire cost over the lifecycle for a piece of equipment. In the case of forklift batteries, the Total Cost of Ownership includes the cost of maintenance and energy usage, in addition to the purchase price. It can also include the opportunity cost of something like a battery charging room, which might otherwise be used for production in a factory.

Unplanned Downtime: An unexpected shutdown of equipment. The cost of disruptions to production that come as a result of unplanned downtime often far exceed the costs associated with repairing the down equipment.

Labor Costs: A sum of all wages paid to employees. This cost can include employee benefits and payroll taxes paid by an employer.

Hidden Costs: Unseen expenses that come along with a purchase. One unseen cost of purchasing a lead acid battery are the energy costs.

Lost Productivity: The loss in revenue, production caused by the unavailability of an employee.

Lithium ForkLift Batteries ,Ensure Quality

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