Electric forklifts are replacing LPG and diesel trucks in Australian warehouses, factories and food sites because they cost less to run, produce no exhaust indoors and, with lithium batteries, can work several shifts on top-up charging. The market is forecast to almost triple between 2025 and 2033. LPG and diesel still hold their place outdoors, on rough ground and at sites without the power supply for charging.
How fast is the electric forklift market growing in Australia?
Grand View Research estimates the Australian electric forklift market at about US$1.5 billion in 2025 and forecasts about US$4.2 billion by 2033, growth of 13.5% a year. Lithium-ion models already made up more than half of that revenue in 2025 and are the fastest-growing battery type.
Three things sit behind the growth. Warehouses built for online retail and distribution run long hours indoors, where electric trucks suit best. Australia's legislated targets of a 43% cut in emissions on 2005 levels by 2030 and net zero by 2050 have pushed many large businesses to set their own targets, and forklift fleets are an easy place to start. And lithium batteries have removed the main reason fleets stayed with LPG: the downtime of charging and swapping lead-acid batteries.
Why businesses are switching to electric forklifts
Most switches come down to cost, air quality and shift patterns, and the reasons carry different weight depending on how a site works.
Lower running and servicing costs
Electricity usually costs less per operating hour than LPG or diesel, and an electric truck has no engine oil, spark plugs, filters, belts or exhaust to service. The purchase price is often higher, so the saving builds up over the hours the truck works. One Australian buying guide estimates that for a 3 t truck working a single shift indoors, electric breaks even with LPG at around 1,200 operating hours a year, and every hour beyond that adds to the saving.
No exhaust indoors
LPG, petrol and diesel forklifts give off carbon monoxide, a gas that's invisible and has no smell and causes headaches, tiredness, nausea, confusion and dizziness. Under WHS laws, a worker's exposure is limited to a workplace exposure standard of 30 ppm averaged over eight hours, and NT WorkSafe's safety alert on forklifts in enclosed areas describes two workers affected by carbon monoxide after an LPG forklift ran inside a cool room. Where a fuel-powered truck has to work indoors, the site needs a risk assessment, good ventilation, maintenance of the exhaust system and often carbon monoxide alarms. An electric forklift removes that exposure at the source.
Lithium batteries made multi-shift work practical
Lithium batteries can be topped up during breaks without damaging them, so one battery can cover two or more shifts. With lead-acid, a multi-shift site usually needs spare batteries, a battery change between shifts and a ventilated charging area. That change is why electric trucks now compete with LPG in busy operations, not only in quiet single-shift warehouses.
Quieter, cleaner sites
Electric forklifts run far quieter than engine-powered trucks, which helps where people work close to the trucks, such as order picking areas and retail backrooms. With no fumes or engine heat, they also suit food handling, pharmaceuticals and cold stores, where many models are built for low temperatures and some Hangcha lithium batteries have a heating function for cold environments.
Lead-acid or lithium: what changed
Electric forklifts have been around for decades, but lithium batteries changed how they fit into a working day. On cost, lithium and lead-acid forklift batteries suit different workloads: lithium usually earns back its higher price on long hours and short charging breaks, while lead-acid often stays cheaper for light, single-shift work. The table compares the two battery types in general terms; the figures for a specific truck depend on its battery and charger.
| Lead-acid | Lithium-ion | |
|---|---|---|
| Charging | Full charge cycles, usually overnight, plus a cool-down | Top-up charging at breaks |
| Multi-shift work | Spare batteries and battery changes | One battery can cover several shifts with top-ups |
| Charging area | Dedicated, ventilated charging area | Charger near where the truck works, still the correct charger for the battery |
| Battery care | Regular watering, cleaning and equalising charges | Little routine care, with a battery management system watching the cells |
| Purchase price | Lower | Higher |
Lead-acid still makes sense for a single shift with a long break overnight to charge, because the lower purchase price isn't offset by downtime. Refuelling time and where each truck can safely work also differ by forklift power source, not just by battery type.
Where LPG and diesel still make sense
Electric isn't the right answer for every site. Heavy outdoor work, uneven ground and demanding environments still suit purpose-built engine-powered trucks, and DJJ Equipment says so when customers ask.
- Rough ground and building sites: unsealed yards, slopes and mud favour diesel trucks with large pneumatic tyres.
- Remote or temporary sites: a farm, mine or project site without a suitable power supply for charging can't keep a fleet charged.
- Long outdoor shifts with no break to charge: refuelling an LPG or diesel truck takes minutes.
- Mixed fleets: many sites keep one engine-powered truck for the yard and run electric trucks inside.
For those jobs, LPG and diesel forklifts remain the practical choice. LPG can work indoors only with adequate ventilation, and diesel is normally an outdoor machine.
The gap is closing even outdoors. High-voltage lithium rough terrain forklifts now take on work that used to need diesel. At Kimbriki Environmental Enterprises in Terrey Hills, Sydney, a waste and resource recovery site, a Hangcha high-voltage lithium rough terrain forklift with switchable 2WD and 4WD and a 1.5 hour full charge works on dusty, uneven ground.
Electric forklift trends to watch
The shift isn't finished. These are the changes most likely to affect what Australian businesses buy over the next few years.
- Lithium as the default for warehouse trucks: in our range, nearly all stackers, pallet trucks, reach trucks and order pickers now come with lithium batteries only.
- Electric in heavier capacities: high-voltage lithium counterbalance trucks now reach 48 t, a size that used to be diesel territory.
- Electric moving outdoors: high-voltage lithium rough terrain forklifts, like the one at Kimbriki, take electric onto yards and uneven ground.
- Automation on repeat runs: an automated guided vehicle can take over fixed routes such as production line feeding, and it runs on batteries too.
Are electric forklifts worth it for your site?
For most indoor operations, yes, and the case gets stronger the more hours the truck works. The table shows what usually fits each type of site.
| Your site | Usually the better fit |
|---|---|
| Indoors, one shift a day | Electric, with lead-acid or lithium |
| Indoors, two or three shifts | Electric with lithium |
| Cold stores and food sites | Electric, on a model rated for the temperature |
| Indoors and a sealed yard | Electric rated for outdoor use, or LPG |
| Rough ground or building sites | Diesel, or a high-voltage lithium rough terrain forklift |
| Remote or temporary site without power for charging | Diesel or LPG forklift |
If your trucks run fewer than about 1,200 hours a year, the saving from electric is smaller and the purchase price matters more. If they run two shifts every weekday, the lower running cost usually pays back the higher price well within the truck's working life.
What to check before you switch
Switching a fleet to electric is more than swapping trucks, so plan these points before you order.
- Battery and charger: lead-acid or lithium, the charger size and how long a top-up takes in your break times
- Power supply: whether your site's electrical supply can run the chargers you need, and where they'll go
- Shift pattern: hours a day and breaks, which decide battery size and whether lithium pays off
- Floor and outdoor use: whether the truck works only on smooth concrete or also on a yard, and whether the model is rated for it
- Warranty and support: the warranty on the truck and the battery, which varies by model, and who services the truck locally
Our range of electric forklifts for sale runs from 0.6 t to 48 t, including lithium counterbalance trucks and high-voltage lithium models for heavier work.
The rise of electric forklifts in Australia is driven by running costs, cleaner air indoors and lithium batteries that keep up with multi-shift work, while LPG and diesel stay strong outdoors and off the grid. If you're weighing the switch, tell DJJ your load, lift height, shift pattern and whether the truck works inside, outside or both, and our team will recommend the right power source. Call 1800 355 388 or visit our Silverwater, Meadowbrook or Bayswater branch.
