Canada EV Battery Pack Market Size

Canada EV Battery Pack Market Analysis

The Canada EV Battery Pack Market size is estimated at 0.46 billion USD in 2024, and is expected to reach 3.99 billion USD by 2029, growing at a CAGR of 54.15% during the forecast period (2024-2029).

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0.46 Billion

Market Size in 2024 (USD)

3.99 Billion

Market Size in 2029 (USD)

4.17 %

CAGR (2022-2023)

54.15 %

CAGR (2024-2029)

Largest Segment by Body Type

88.08 %

value share, Passenger Car, 2023

The Canadian EV battery market's largest segment is passenger cars due to government incentives such as a $5,000 incentive and availability of charging infrastructure.

Largest Segment by Propulsion Type

94.75 %

value share, BEV, 2023

With purchase rebates, zero-emission vehicle (ZEV) credits, and tax incentives and 20,000 public charging stations across Canada increases BEV adoption in near future.

Largest Segment by Battery Chemistry

56.35 %

value share, NMC, 2023

The continuous evolution of NMC battery technology and ability of faster charging has captured the attention of automakers and customers in Canda EV batterypack market.

Largest Segment by Battery Form

53.67 %

value share, Cylindrical, 2023

Due to packaging efficiency, design flexibility and thermal management making cylindrical batteries a popular and leading choice for EV in Canada.

Leading Market Player

52.83 %

market share, LG Energy Solution Ltd., 2022

LG Chem establishes operations in Canada to meet the local automotive industry's battery demand and support electric mobility advancement.

Government support and incentives boost the demand for BEVs

Canada EV Battery Pack Industry Segmentation

Bus, LCV, M&HDT, Passenger Car are covered as segments by Body Type. BEV, PHEV are covered as segments by Propulsion Type. LFP, NCA, NCM, NMC, Others are covered as segments by Battery Chemistry. 15 kWh to 40 kWh, 40 kWh to 80 kWh, Above 80 kWh, Less than 15 kWh are covered as segments by Capacity. Cylindrical, Pouch, Prismatic are covered as segments by Battery Form. Laser, Wire are covered as segments by Method. Anode, Cathode, Electrolyte, Separator are covered as segments by Component. Cobalt, Lithium, Manganese, Natural Graphite, Nickel are covered as segments by Material Type.

• In recent years, Canada has seen significant growth in the adoption of electric vehicle (EV) battery packs. According to the International Energy Agency (IEA), the total number of EVs produced in Canada reached 17,000 in 2020, representing a 29% increase from the previous year. The increased production has also led to a reduction in the cost of battery packs, which is a key factor driving the adoption of EVs. According to Markline, the average cost of a battery pack in Canada was USD 157 per kilowatt-hour in 2020, a 14% reduction from 2019. R&D has also played a key role in driving the adoption of EV battery packs in Canada.
• One of the primary drivers of EV growth is the government's emphasis on supporting renewable energy and lowering carbon emissions. The numerous rebates and tax credits available to EV customers in Canada make them more affordable for the general public. For example, the Canadian federal government has introduced the iZEV program, which provides up to USD 5,000 in refunds to consumers who purchase or lease qualified zero-emission cars, including EVs. This has aided in the increased adoption of EVs in the country, driving the demand for EV battery packs.
• The future of electric vehicles (EVs) in Canada looks promising. The Canadian government set a target for all new light-duty vehicles sold to be zero-emission vehicles by 2035. Various Canadian provinces have set their targets for the adoption of electric vehicles. For example, Quebec aims to have 100% of new passenger vehicle sales be electric by 2035, and British Columbia has set a target of 100% zero-emission vehicle sales by 2040. This will undoubtedly lead to an increase in the adoption of EVs in the country.