Industrial electrification 2025: the 3 trends transforming the sector
21 October 2025
2025 is drawing to a close and for us it’s time to take stock of an intense year in which Flash Battery played a leading role at the main European trade fairs dedicated to industrial electrification: Bauma for the construction machinery sector, IVT Expo for system integrators and OEMs and GIS Expo for industrial lifting and handling.
Three events with different audiences and focuses, yet united by a clear message: industrial electrification has entered a phase of technological and cultural consolidation.
The question is no longer whether to electrify but how to do it efficiently, sustainably and competitively.
Three events with different audiences and focuses that enabled us to engage directly with manufacturers, partners and users of our solutions, offering a very clear snapshot of how the industrial electrification sector is evolving.
From the discussions and reflections that emerged in these contexts, we identified three main trends that are redefining the trajectory of the sector:
- The consolidation of LFP chemistry as a benchmark for industrial applications
- The need to dispel the popular misconceptions of electrification, still too widespread among users and manufacturers
- The shared growth of the entire supply chain, which requires new skills, collaboration and a long-term vision
Growth driven by tangible data
According to the International Energy Agency (IEA), in 2024 LFP batteries exceeded 55% of global cell production intended for electric vehicles and industrial applications, up 35% compared to 2022. Market analyses show steady growth in LFP adoption, supported by the reduction in cell/pack costs and the push from the main global players.
As our CEO, Marco Righi, explained, “Only six years ago lithium iron phosphate was considered a transitional solution, but the reality is that today it represents the most robust and versatile chemistry on the market. Large-scale production is shifting from NMC to LFP and the benefits are increasingly evident.”
LFP chemistry is confirmed as the most competitive solution in many segments thanks to:
- Greater thermal stability than other chemistries, with higher runaway thresholds
- Absence of critical materials such as nickel, manganese and cobalt.
- Fast charging and intelligent cycle management thanks to BMS and monitoring platforms.
- Reduced costs along the value chain (cells and packs) and wide availability of supply.
- Environmental and social sustainability consistent with the targets of the European Green Deal.
Different formats of LFP lithium battery cells, including cylindrical and prismatic used in industrial sector
A direct impact on industrial design
For OEMs and system integrators, the evolution of LFP chemistry translates into a direct impact on the design of industrial machines and vehicles.
The evolution of high-density LFP cells makes it possible to reduce overall dimensions and increase specific power, simplifying integration even in applications such as cranes, earth-moving machinery, AGVs and aerial platforms.
At the same time, the standardisation of modules and balancing systems has made batteries easier to integrate, with tangible benefits in terms of scalability and maintenance.
Moreover, the combination of LFP chemistry and predictive monitoring systems raises the bar in terms of reliability and Total Cost of Ownership.
Custom design of Flash Battery lithium batteries, optimized for energy needs of industrial machines and electric vehicles.
From sustainability to competitiveness
Beyond safety and durability, LFP chemistry addresses a European strategic priority: reducing dependence on critical raw materials.
The absence of cobalt and nickel – elements with a high environmental and geopolitical impact – shortens the supply chain and improves traceability, both of which are key factors for the application of the new European Battery Regulation 2023/1542.
This shift towards more accessible materials and more sustainable industrial processes is not only an ethical issue but also a factor of industrial competitiveness: it allows manufacturers to keep production in Europe, improve margins and ensure continuity of supply.
As we saw at all three 2025 trade fairs, manufacturers that are systematically adopting LFP technology are now able to offer more reliable machines with lower operating costs and greater lifecycle predictability.
Despite rapid technological evolution, the path towards electrification is still hindered by a series of prejudices and misconceptions that slow its adoption, especially in the industrial sector.
During this year’s trade fairs, discussions with manufacturers and operators underscored a crucial point: the technology is ready but the perception is not always aligned with reality.
The three popular misconceptions to overcome
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Batteries only last a few years
In reality, the useful life of an industrial LFP battery easily exceeds 10 years, with more than 4,000 charge-discharge cycles.
With proper thermal management and advanced balancing systems, average annual degradation is reduced to less than 2%.
Today the life of a well-designed battery exceeds that of the mechanics of many vehicles.
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There aren’t enough charging stations
The number of public charging points in Europe grew by 42% in 2024 alone, reaching over 870,000 (source: ACEA).
To these must be added charging infrastructure dedicated to industry, which is increasingly widespread at production and logistics sites.
The real challenge isn’t the quantity but the standardisation of charging protocols and intelligent energy flow management, areas in which Europe is investing heavily.
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Batteries catch fire easily
According to the Insurance Institute for Highway Safety, the risk of fire is ten times lower in electric vehicles than in those with combustion engines.
In industrial applications, LFP chemistry ensures maximum thermal stability and minimal reactivity even in the event of impact or short circuit.
The integration of continuous monitoring systems and predictive artificial intelligence now makes it possible to take preventive action, further reducing the risk.
These misconceptions continue to circulate because clear, technical communication tools capable of translating the complexity of electrification into tangible user benefits are often lacking.
As industry players, we believe it’s essential to strengthen a culture of technological transparency supported by objective data and verifiable user experiences.
The goal is not only to “convince” but to demonstrate, with field testing, that industrial electrification is now a reliable, sustainable and already economically competitive solution.
In this regard, the dissemination of applications, technical benchmarks and comparative analyses becomes a strategic ally for the market.
A supply chain growing together: skills, training and collaboration
Industrial electrification isn’t an individual race but a systemic process.
Based on our conversations with OEMs, system integrators and dealers during Bauma, IVT Expo and GIS Expo, it was clear to all that no transition can take place without collective growth in skills and processes.
From prototype to mass production
The transition from prototype to industrial production of an electric vehicle requires years of development, validation and testing, with a level of complexity that is far greater than for combustion machines.
Each phase – design, electronic integration, testing, remote monitoring – requires specific know-how. It’s not only a matter of introducing a new technology but of transferring expertise, building trust and highlighting the tangible benefits of electrification.
This complexity makes a co-design approach between the battery supplier, machine manufacturer and system integrator essential. Only by sharing requirements and design constraints at an early stage is it possible to reduce development times and improve the system’s overall reliability.
From prototype to series production: complete design of a Flash Battery lithium battery for industrial applications.
Technical and soft skills
Technological change also brings a cultural shift.
Today technical professionals must not only understand chemistry and electronics but also analyse data, use diagnostic software and interpret predictive logic.
Continuous training, both inside and outside companies, has become a strategic asset to maintain competitiveness.
According to McKinsey’s report on “The Future of Industrial Electrification 2025”, 60% of European manufacturers have launched upskilling plans for technical staff, focusing on power electronics, embedded software and data analysis.
Cooperation and transparency along the supply chain
Another key aspect concerns data sharing along the entire supply chain.
The use of digital platforms and remote monitoring systems now makes it possible to gather information that is useful not only for maintenance but also for optimising production and operating processes.
Transparency therefore becomes a factor of competitiveness, improving quality, reducing downtime and ensuring traceability, all of which are essential requirements for the certifications envisaged under the EU Battery Regulation 2023/1542.
As Flash Battery, we fully recognise ourselves in this vision of open collaboration.
Our goal is to transfer expertise, not just products, in order to build a solid, innovative and sustainable European supply chain together with our partners.
Evolution of LFP chemistry
LFP chemistry continues to improve in terms of energy density and performance at low temperatures.
The new “LFP 2.0” cells now reach densities of 190 Wh/kg, approaching NMC chemistry values but with lower costs and greater safety.
This evolution makes LFP even more competitive for heavy-duty and off-highway vehicle applications.
The first applications of sodium batteries
At the same time sodium-ion batteries are entering the market, a technology that according to the IEA “Energy Storage Outlook 2025” could cover up to 10% of European stationary storage by 2030.
It’s an interesting solution for fixed applications where weight isn’t a critical factor.
However, it’s not yet ready for vehicular use due to its lower energy density and poor volumetric efficiency.
Artificial intelligence and predictive maintenance
Remote monitoring platforms and predictive artificial intelligence techniques are revolutionising fleet and plant management.
By analysing millions of logs and usage data it’s possible to predict faults, optimise charging cycles and reduce TCO (Total Cost of Ownership).
This approach, which combines hardware and software, is now a key lever to improve efficiency, reliability and sustainability. Looking ahead, the integration between AI and Big Data will be the main driver of industrial electrification.
Flash Data Center interface: proprietary technology for advanced remote monitoring and predictive diagnostics of Flash Battery lithium batteries.
