Challenges and Solutions in Electrification Technology: Construction Machinery and Charging Solutions

The Global Surge in Construction Machinery Electrification

As the section manager of the Business Development Group, I oversee electrification initiatives across Japan, Korea, Europe, and the United States. While the shift towards electrification is gaining momentum worldwide, Europe is at the forefront. Major cities like Oslo, Copenhagen, and London are targeting carbon neutrality between 2025 and 2030, with the Netherlands aiming for nationwide zero emissions.

This trend is reshaping the industry landscape. In some urban areas, public works tenders are now exclusively awarded to companies using electric construction machinery. In response to these urgent demands, construction machinery manufacturers across various countries are ramping up their development of electric machines.

Government backing is also playing a crucial role. Subsidy programs have been launched in California, United States, Japan and the Netherlands for instance. These initiatives are proving instrumental in accelerating the adoption of electric construction machinery.

Charging Infrastructure Deficit and Complex Regulations: Key Hurdles to Overcome

The primary concern for end-users considering electric construction machinery is the availability of charging infrastructure. While charging is crucial for operating these machines, many work sites - such as forests, highways, and suburban areas - lack the necessary facilities. This forces users to transport their equipment to locations with charging capabilities, adding an extra layer of complexity to operations. The industry recognizes this challenge, and solutions like portable chargers have been proposed. However, with few such options currently on the market, this remains a significant barrier to the widespread adoption of electric construction machinery.

Meanwhile, OEMs face their own set of challenges, primarily stemming from the intricate web of regulations and policies surrounding electric construction machinery. This is particularly evident in Europe, where various regions are introducing an increasing number of regulations, subsidy programs, and tenders exclusively for electrified machinery. While manufacturers are striving to stay informed, their expertise has traditionally been focused on diesel engine powered machinery regulations, leaving them inadequately prepared to navigate the landscape of electric equipment regulations. Moreover, the nature of electrification regulations differs significantly from those governing exhaust emissions, adding another layer of complexity.

These factors are complicating the development process. Manufacturers are struggling to establish accurate sales projections, given the need to factor in region-specific subsidies, anticipate demand for specialized tenders, and align with evolving regulatory timelines. Consequently, forecasting return on investment has become increasingly challenging, raising the bar for securing internal approval for new projects.

Keeping Pace with Rapid Technological Advancements: A Development Challenge

On the technical front, the most pressing issue is the widening gap between increasingly stringent regulations and manufacturers' development capabilities. Full-scale mass production of electric construction machinery has yet to gain momentum. In cases where tender project requires certain power categories or size of the vehicles that are not available in the market, OEM dealers and third-party entities have resorted to retrofit solutions to meet the demand for electric machinery in tender projects. These involve removing engines from existing equipment and retrofitting them with batteries. However, this approach has come under scrutiny due to the unnecessary costs and waste associated with discarding functional engines.

Another critical challenge is the lack of industry-specific knowledge in construction among electric components suppliers. The electrification technology field is populated by numerous startups, many of which lack the traditional understanding of industrial machinery norms. This disconnect is particularly evident in reliability testing, where inadequate evaluations often force OEMs to conduct extensive in-house testing, leading to prolonged development lead-time and increased costs. Furthermore, many prototypes or concept machines are assembled using a patchwork of components, resulting in designs that are far from ready for mass production.

OEM manufacturers, particularly those with extensive development experience of electrified machines, face an additional challenge: the abrupt discontinuation of supply or unexpected model changes of components by suppliers. In the traditional industrial machinery sector, it's standard practice for manufacturers to supply and maintain consistent product performance and design until the end of a machineries' production run, and to continue supplying spare parts for at least a decade after the machines production ceases. However, the rapidly evolving electrification industry, especially in terms of battery technology, is disrupting this norm. OEMs are grappling with frequent format changes and production halts in battery cells. In some instances, they're forced to re-evaluate their designs every few years to accommodate substitute components or next-generation battery packs, adding another layer of complexity to their operations.

Yanmar Power Technology's Multifaceted Approach to Industry Challenges

Yanmar Power Technology (YPT) offers comprehensive solutions to address the diverse challenges faced by OEMs and end-users.

In powertrain design and evaluation, YPT leverages over a century of industrial machinery powertrain expertise to accelerate OEM development processes. Specifically, YPT provides:
- Component and part-level evaluations based on rigorous industrial quality standards
- Electric motor tuning optimized for various work equipment load patterns
- Electronic Control Units (ECUs) for integrated component management

This approach allows OEMs to confidently implement electric powertrains while improving development efficiency by outsourcing certain design and evaluation tasks to Yanmar. Additionally, it ensures easy access to high-quality components that meet the exacting standards of industrial machinery.

Regarding the continuity of electrified component supply, Yanmar offers a centralized approach to supplier-related challenges. This includes extending supply periods through standardization and securing backup suppliers to mitigate production disruptions. Such measures minimize the need for OEMs to redesign mass-produced items and reduce the frequency of re-evaluations. Moreover, OEMs benefit from quality enhancements achieved through our company's internal sharing and resolution of field issues.

To tackle the insufficient charging infrastructure, we present the EHR series - a portable energy storage and distribution system marketed by our group company, Himoinsa. This proven system, with its established notable sales record, aims to alleviate end-users' concerns and accelerate the adoption of electric construction machinery.

To address the challenge of gathering Regulations and policies on electric construction machinery, we've implemented a initiative of regular updates. We share our latest research on regulations and certifications, mirroring our approach to annual updates on global engine regulations. This information is presented in an accessible format, tailored for each country, designed to enhance OEM manufacturers' understanding of the evolving landscape. Same approach will be applied to electrification field too.

The Potential Rise of E-Native Machines

Current electric construction machinery adapts battery systems to designs originally intended for engines, which limits battery capacity due to space constraints. Moreover, the extensive use of hydraulic systems in these machines contributes to lower electrical energy efficiency.

To address these challenges, the construction machinery industry is seeing the emergence of "E-Native Machines," similar to the trends in electric vehicles. Some manufacturers are already showcasing concept machines aligned with this vision at various exhibitions. E-Native Machines are designed with a primary focus on electrification, optimizing for battery use by minimizing or eliminating hydraulic systems to achieve full electrification. This approach is expected to extend operational hours and enhance practicality.

Furthermore, the electric components used in E-Native Machines are highly compatible with sensor detection and automatic control, offering the potential to generate new value beyond just being emission-free and quiet. If these E-Native Machines are brought to market, it is clear that OEM manufacturers will face increasing demands in vehicle development. Yanmar Power Technology is exploring ways to support OEMs beyond just supplying electric powertrains, offering broader solutions to assist in their electrification efforts.

As we continue to navigate the evolving electrification trends, Yanmar is committed to a multifaceted approach, aiming to contribute to the sustainability and efficiency of the construction industry.