Canada Electric Vehicle Battery Market

Canada Electric vehicle battery Market Overview:

The Canada electric vehicle battery market size reached USD 1.85 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 4.25 Billion by 2033, exhibiting a growth rate (CAGR) of 9.70% during 2025-2033. The market is propelled by the growing consumer demand for electric vehicles, strong support from the government through incentives and policies, and various innovations in the field of battery technology.

Canada Electric Vehicle Battery Market Trends:

Increasing Demand for Electric Vehicless

The growing need for electric vehicles by Canadian consumers is one of the major drivers for the EV battery market. The highest quarterly EV registrations on record were recorded during the first quarter of 2022, with 26,018 (7.7% of total registrations for the quarter). Battery electric vehicles account for approximately 75% of new electric vehicle registrations, followed by plug-in hybrid electric vehicles that take the rest. With growing Canadians turning to green consciousness and wanting to turn to non-conventional gasoline-guzzling automobiles, demand for EVs has exploded. Behind this transition lie many drivers such as escalating fuel prices, worry regarding global warming, and improving accessibility to greater diversity of electric cars. Vehicle manufacturers are addressing the need with the production of less expensive and efficient EVs, thus raising demand for improved battery technology. The increasing demand is further backed by advancements in battery performance and range, which makes EVs increasingly practical for daily use, even in locations with severe weather conditions.

Government Initiatives and Grants

One of the key factors driving the electric vehicle (EV) battery market in Canada is the strong support from the government through incentives and policies. For the purchase or leasing of light-duty zero-emission vehicles (ZEVs), Canadian individuals and businesses can receive up to $5,000 at the point of sale. Federal and provincial governments are offering a range of incentives, including rebates, tax credits, and grants, to encourage both consumers and manufacturers to adopt EV technologies. Additionally, the government is investing in charging infrastructure and R&D for battery technology, further stimulating the market. Policies aimed at minimizing carbon emissions and shifting to a low-carbon economy are also pushing automakers and battery manufacturers to expand their operations in Canada, leading to a robust growth environment for the EV battery market. For example, since 2016, Canada has allocated more than $1 billion to enhance the affordability of EVs and improve charger accessibility for Canadians. These investments allow for the development of a coast-to-coast charger network in neighborhoods where Canadians work, live, and play, and up to $5,000 in federal rebates support more Canadians in making the switch to an EV. According to the Government of Canada, Budget 2022 provided an additional $400 million to recapitalize ZEVIP and extended the program until March 31, 2027, supported by $500 million that Canada's Infrastructure Bank will invest in large-scale ZEV charging and refueling infrastructure that benefits the public and is financially sustainable. By the year 2029, the Canadian Government plans to establish 84,500 chargers along with 45 hydrogen stations, in order to support ZEV charging and refueling infrastructure.

Technological Advancements

Technological innovations in the field of battery technology have also been driving the electric vehicle battery market forward in Canada. Innovations like solid-state batteries, increased energy density, and fast charging are producing an increasingly efficient and cost-effective battery for EVs. This not only increases the range of electric cars but also shortens their charging times, which have been some of the great concerns for the potential buyers. Other benefits include further declines in the cost of batteries due to the advancement of research and development on battery technology. Moreover, cost considerations are expected to decline significantly because Canadian companies are actively participating in such innovations, thus positioning the country at the center of the global EV battery supply chain.

Canada Electric Vehicle Battery Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on battery type, propulsion type, and vehicle type.

Battery Type Insights:

• Lithium-Ion Battery
• Nickel-Metal Hydride Battery
• Lead-Acid Battery
• Others

The report has provided a detailed breakup and analysis of the market based on the battery type. This includes lithium-ion battery, nickel-metal hydride battery, lead-acid battery, and others

Propulsion Type Insights:

• Battery Electric Vehicles
• Plug-in Hybrid Electric Vehicles
• Hybrid Electric Vehicles

The report has provided a detailed breakup and analysis of the market based on the propulsion type. This includes battery electric vehicles, plug-in hybrid electric vehicles, hybrid electric vehicles.

Vehicle Type Insights:

• Passenger Car
• Commercial Vehicles
• Two-Wheeler

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes passenger car, commercial vehicles, and two-wheeler.

Regional Insights:

• Ontario
• Quebec
• Alberta
• British Columbia
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Ontario, Quebec, Alberta, British Columbia and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Canada Electric Vehicle Battery Market News:

• In April 2023, the federal government agreed to offer Volkswagen up to $13 billion in subsidies over the next ten years as part of a deal to ensure the company constructs an electric-vehicle battery facility in southern Ontario.

Canada Electric Vehicle Battery Market Report Coverage:

Key Questions Answered in This Report:

• How has the Canada electric vehicle battery market performed so far and how will it perform in the coming years?
• What is the breakup of the Canada electric vehicle battery market on the basis of battery type?
• What is the breakup of the Canada electric vehicle battery market on the basis of propulsion type?
• What is the breakup of the Canada electric vehicle battery market on the basis of vehicle type?
• What is the breakup of the Canada electric vehicle battery market on the basis of region?
• What are the various stages in the value chain of the Canada electric vehicle battery market? 
• What are the key driving factors and challenges in the Canada electric vehicle battery market?
• What is the structure of the Canada electric vehicle battery market and who are the key players?
• What is the degree of competition in the Canada electric vehicle battery market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Canada electric vehicle battery market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Canada electric vehicle battery market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Canada electric vehicle battery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.