In order to reduce the energy consumption of hydraulic lifting device of electric forklift, load sensitive balance valve was used to drive lifting of forklift arm. The sketch of lifting device of electric forklift truck was established, and the motion principle of free lifting zone and second lifting zone of forklift truck was analyzed. According to the energy recovery equation, the mathematical models of hydraulic drive and energy saving efficiency were deduced. Under different working conditions, the output power of the hydraulic pump was simulated by using MATLAB. The results show that the output power of the hydraulic pump with load-sensitive balancing valve is smaller than that without load-sensitive balancing valve in the process of forklift arm descending under no-load or light-load conditions, and the output power of the hydraulic pump with load-sensitive balancing valve and without load-sensitive balancing valve is almost the same in the process of forklift lifting, resting and descending under heavy load conditions. Reasonable setting of load size and using load sensitive balance valve can realize energy recovery and consequently save energy consumption.