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The energy efficiency of an electro-hydraulic forklift is significantly improved by using a permanent-magnet-synchronous-motor-servo-drive-based direct pump control to control the position of the fork without control valves. This paper provides a short evaluation of the hydraulic system and a more detailed analysis of the losses of the electric machine drive system. A theoretical approach is taken and the results are verified by practical measurements. Finally, possible improvements of the energy efficiency in the suggested system are discussed.