North America Electric Commercial Vehicle Battery Pack Market

North America Electric Commercial Vehicle Battery Pack Market Size

The North America electric commercial vehicle battery pack market was valued at USD 7.1 billion in 2024 and is estimated to register a CAGR of 10.3% between 2025 and 2034. The adoption of new charging and battery technologies directly facilitates market growth. Electric fleet operators require heavy-duty reliable and high-capacity chargers with minimum downtime. The adoption of public DC fast chargers, depot charging stations, and megawatt charging systems (MCS) are on the rise, leading to improved feasibility of commercial EVs, thereby creating the demand for robust battery packs designed for quick high-speed charging.

Moreover, the development of infrastructure alleviates range anxiety and increases versatility in operations for both regional and long-haul logistics operators. With increasing the practicality of commercial EVs for different routes and payloads, fleet managers are increasing investing in EVs, resulting in rising demand for battery packs.

In September 2024, CATL released an ultra-high energy density bus battery, the TECTRANS Bus Edition, which stores LFP (Lithium Iron Phosphate) chemistry energy at a density of 175 Wh/kg, the highest recorded in bus applications. This system is built to outlast competing products on the market; CATL claims a service life of up to 1.5 million kilometers or 15 years. Additionally, the battery is warranted for a decade or 1 million kilometers.

Public investment and private efforts to expand the charging infrastructure are further boosting the demand for battery packs and their deployment in commercial fleets. In North America, electric commercial vehicle battery pack consumption is driven mainly by government incentives and emission regulations policies. The U.S. Inflation Reduction Act (IRA) offers tax credits and subsidizes EV purchases along with domestic battery manufacturing which aids in cost-effective commercial electrification. Furthermore, states like California have zero-emission mandates while the federal government is also encouraging a shift from diesel to electric fleets for decarbonization travel purposes. All these policies create regulatory pressure alongside financial incentives thereby increasing the demand for ECV battery packs.

North America Electric Commercial Vehicle Battery Pack Market Trends

• Manufacturers increasingly invest in modular battery systems which can be customized according to the respective vehicle size, range requirements, and payload needs. This helps in improving the serviceability, lowering manufacturing costs, and greater scalability across different vehicle platforms.
  
• The focus in the market now is shifting towards finding solutions for battery reuse and recycling as more commercial electric vehicles (CEVs) are aging. Used commercial EV battery packs are being used for research purposes to study its secondary use which includes stationary storage to maximize value extraction.
  
• Redwood Materials, in March 2025, entered a partnership with Isuzu Commercial Truck of America for the circular battery supply chain for medium- and heavy-duty commercial electric vehicles. As part of this partnership, Redwood will handle proper recycling of Isuzu’s battery packs, modules, and cells from their dealerships, service center, R&D facilities, and assembly plant across the United States and Canada.
  
• The demand for battery packs greater than 150 kWh is increasing, particularly in the heavy-duty freight trucks and transit buses. Large battery packs allow for extended travel distance while reducing the need for frequent charging, which is beneficial to logistics fleets.
  
• With the growing implementation of depot-based and public fast-charging infrastructure accelerates, the design of battery packs is also changing and adapting to enable rapid and frequent charging cycles. It is now becoming important to design battery packs compatible with megawatt charging systems (MCS).
  

North America Electric Commercial Vehicle Battery Pack Market Analysis

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Based on battery chemistry, the market is segmented into LFP (lithium iron phosphate), NCA (nickel cobalt aluminum), NMC (nickel manganese cobalt), and others. In 2024, the LFP segment was valued at around USD 2.5 billion and held a market share of over 35%.

• LFP batteries are mostly used in commercial applications as they are stable at high temperatures and are less likely to experience thermal runaway or fires. These safety concerns are generally preferred and adopted by fleet operators who need to transport goods or people over long distances.
  
• LFP batteries offers a longer lifecycle which can range around 3,000-5,000 of charge cycles as compared to other battery technologies, making it beneficial for commercial vehicle fleets routinely operating at full capacity, minimizing replacement and maintenance expenses.
  
• LFP though has a lower energy density than NMC or NCA, it exceeds the range requirements for urban and regional delivery use. Due to its lower overall cost and enhanced safety and performance, it stands out for light and medium duty commercial EVs.
  
• Motiv Power Systems launched their next-generation electric trucks equipped with lithium iron phosphate battery system, an updated motor, and a newly designed powertrain with a reduced number of components. These vehicles are medium-duty step vans, box trucks, and shuttle buses with a payload capacity of 2-6 tons which have been deployed across North American fleets. This launch was made in April 2023.
  
• LFP does not utilize cobalt or nickel, it reduces raw material expenses. Cost efficiency per kilowatt-hour is important for fleet owners buying vehicles in bulk, and LFP batteries outperform NMC or NCA chemistries in this sense.

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Based on the propulsion, the market is segmented as BEV and PHEV. The BEV segment dominated in 2024 with a market share of around 69%.

• BEVs utilize a fully electric drivetrain which is less complex than that of plug-in hybrids (PHEVs) since it has fewer moving parts. For commercial fleet operators, the lack of fuel expenses and reduced total cost of ownership provide substantial savings in maintenance costs.
  
• The charging infrastructure in North America, at both public and private levels is experiencing strong growth. This is particularly true for depot and fast charging networks, which are mainly designed for battery electric vehicles (BEVs). This alignment with the burgeoning charging infrastructure further reinforces the adoption of BEVs within logistics, delivery, and transit fleets.
  
• Many commercial vehicle manufacturers are increasingly and heavily investing in BEV platforms, rather than hybrids. With broader product availability and stronger supply chains for BEVs, fleets find it easier to procure, deploy, and scale all-electric commercial vehicles, thus leading to their growing demand.
  

Based on vehicle, the market is segmented as LCV, MCV, and HCV. The LCV segment led the market in 2024.

• The integration of batteries into LCVs is comparatively easier and less expensive since LCVs are lighter and smaller than MCVs and HCVs. Fleet operators can deploy LCVs more quickly and at scale since less investment is required for vehicle or charging infrastructure, thus leading to its wider market share.
  
• Many cities across North America are implementing the low-emission zones and zero-emission delivery mandates focusing on urban freight transport. There is more regulatory pressure for city LCVs to become fully electric, which increases the demand for the battery packs significantly.
  
• The rise in online retail has increased the demand for electric vans and delivery vehicles. LCVs are perfect for the last-mile delivery because of the size, range requirements, and the daily return-to-home duty cycles which are well-suited to the operational range of EVs and battery packs.
  

Based on battery form factor, the market is segmented as prismatic cells, pouch cells, and cylindrical cells. The prismatic cells segment led the market in 2024.

• Prismatic cells come are designed and manufactured in rectangular design that helps reduce wasted space, thus helping in compact stacking, and making them ideal for commercial EVs that require high-capacity battery packs. This increases the overall energy density of the system.
  
• The flat surfaces of prismatic cells help in improving heat dissipation, which helps in easy integration of effective thermal management systems. This is necessary for commercial electric vehicles that operate under severe and longer duty cycles.
  
• OEMs, system integrators, and battery manufacturers for buses, trucks, and vans usually prefer and use prismatic cells due to their favorable energy density and reliability. These cells also work well with the large, flat battery compartments found in most commercial vehicles.

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U.S. dominates the electric commercial vehicle battery pack market in the North America with a major share of over 80% and was valued at around USD 5.7 billion in 2024.

• The U.S. has the largest stock of commercial vehicles in the delivery, logistics, construction, and public transit sectors. This makes electric commercial vehicles and their battery packs the most sought after in the market.
  
• The U.S. hosts major players like Proterra, Tesla, GM, Rivian, Ford, and Lion Electric (U.S. facilities) along with emerging battery corporations such as American Battery Solutions and Kore Power. This further strengthens the self-sufficiency of local production and adoption of electric battery packs in the region.
  
• In October 2024, LG Energy Solution signed contracts with Ford Motor Company to supply battery modules for ford electric vans to be sold in the UK and EU markets. Under these contracts, LG Energy Solution is expected to supply a total of 109 GWh of batteries, beginning deliveries in 2026 over a span of four to six years. Also, the parties have confirmed that batteries for the existing Ford Mustang Mach-E will be manufactured at LG Energy Solution’s facility in Michigan from 2025 to benefit from the Inflation Reduction Act.
  
• Amazon, FedEx, and Walmart are large corporations in the U.S. that are rapidly purchasing battery packs to electrify their fleets. Not only do these companies increase demand, they also set industry standards that others in the region follow.
  
• Amazon, FedEx, and Walmart are large corporations in the U.S. that are rapidly purchasing battery packs to electrify their fleets. Not only do these companies increase demand, they also set industry standards that others in the region follow.
  

The growth forecast for the electric commercial vehicle battery pack market in Canada from 2025 to 2034 is highly encouraging.

• In Canada, both at the federal and provincial level, there are commercial subsidies for purchasing electric vehicles, as well as for infrastructure and battery manufacturing. Canada's Zero-Emission Transit Fund supports electric buses and auxiliary systems, thus increasing the demand for battery packs.
  
• Canadian cities such as Toronto, Vancouver, and Montreal are upgrading their municipal fleets and transitioning to electric buses at a faster rate. This change is expected to create a steady market for high-power energy packs for large scale public sector.
  
• Canada is also focusing in boosting internal battery supply chains of the country with announcements on lithium mining, cell production, and EV assembly. Locally, Lion Electric and Electra Battery Materials are helping build a domestic ECV battery ecosystem, which is further expected to boost the market and demand for electric battery packs for commercial vehicles in the region.
  

North America Electric Commercial Vehicle Battery Pack Market Share

Top 7 companies leading the North America electric commercial vehicle battery pack industry in 2024 were BYD, CATL, LG Energy Solution, Panasonic, Samsung SDI, SK Innovation, and AESC Group. Together, they held a market share of around 40%.

• BYD has established itself as an electric commercial vehicle manufacturer and battery producer, with a significant foothold in North America through its electric buses, trucks, and manufacturing plant in California. With a vertically integrated structure, BYD is able to furnish battery packs for its vehicles and fleet clients, capturing a considerable portion of the ECV battery market.
  
• CATL is the number one EV battery manufacturer in the world and a key producer of LFP batteries which are gaining traction in commercial electric vehicles. Although headquartered in China, CATL is advancing into North America through partnerships and licensing agreements, using its scale and cost leadership position to serve key OEM customers.
  
• LG Energy Solution is now one of the biggest commercial electric vehicle manufacturers in North America with customers such as GM (BrightDrop), Ford and Proterra. The company has joint ventures which serve as a major source of electric vehicle batteries.
  
• Panasonic not only manufactures battery packs for Tesla but is also entering the commercial vehicle space with projects like Cybertruck and Semi. Increased Investments in the US alongside Nevada gigafactory positions the company as a key player in the market for commercial EV platform batteries.
  
• Samsung SDI is recognized for its high energy density and durable batteries, serving important clients such as Rivian, which is further developing commercial electric vans and various major commercial e-commerce companies. The company is also investing in joint ventures to increase production capacity in South Korea to support the North American demand.
  

North America Electric Commercial Vehicle Battery Pack Market Companies

Major players operating in the North America electric commercial vehicle battery pack industry include:

• A123 Systems
• Accelera
• AESC Group
• American Battery Solutions
• BYD
• CATL
• LG Energy Solution
• Panasonic
• Samsung SDI
• SK Innovation
  
• A few global players dominate the market due to their strong OEM partnerships and large-scale production capabilities. Startups and joint ventures are entering this market and making their mark in the market, especially in regional and niche markets.
  
• The construction of multiple gigafactories in the U.S. and Canada marks a shift toward regional manufacturing dominance. This expansion permits OEMs and battery companies to satisfy the growing demand as well as meet incentives, transforming the competitive landscape.
  
• Battery pack suppliers are differentiating themselves through energy density, safety features, modular designs and with the chemistry used (LFP vs. NMC). These suppliers stand out from the competition with the ability to tailor solutions customized for different vehicle classes and duty cycles.
  

North America Electric Commercial Vehicle Battery Pack Industry News

• In April 2025, SK On, the battery subsidiary of South Korea’s SK Group, entered into a strategic supply contract with the Slate Auto electric vehicle company, an emerging startup from the US, funded by Jeff Bezos. SK On is set to provide high-nickel NCM (nickel-cobalt-manganese) batteries with a capacity of 20 GWh slated for delivery between 2026 and 2031. This would be enough to power around 300,000 mid-sized electric vehicles in the region.
  
• In May 2024, Daimler Truck North America selected Proterra’s battery technology to power its next generation of school buses and last-mile delivery electric vehicles with Proterra's battery technology. Proterra batteries will also be used in Thomas Built Buses Saf-T-Liner C2 Jouley electric school bus and the MT50e delivery truck manufactured by Freightliner Custom Chassis Corporation (FCCC).
  
• In April 2024, the Chinese battery manufacturer CATL and the bus manufacturer Yutong launched a long-life battery pack designed specifically for new energy commercial vehicles like buses, light, and heavy-duty trucks. This new product aims to achieve a 15-year or 1.5-million-kilometer warranty which sets a new record for the commercial vehicle industry.
  
• In October 2023, American Battery Solutions (ABS) entered a multi-year contract with NFI Group Inc., one of the largest bus and coach manufacturers in North America, to supply custom lithium-ion battery packs for NFI’s battery-electric transit buses and coaches. This partnership strategically enables NFI to access needed resources for the scale-up of battery-electric bus production scheduled for 2024 and following years.
  

The North America Electric commercial vehicle battery pack market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and shipments (units) from 2021 to 2034, for the following segments:

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Market, By Vehicle

• Light commercial vehicle (LCV)
• Medium commercial vehicle (MCV)
• Heavy commercial vehicle (HCV)

Market, By Propulsion

• BEV
• PHEV

Market, By Battery Chemistry

• LFP (Lithium Iron Phosphate)
• NCA (Nickel Cobalt Aluminum)
• NMC (Nickel Manganese Cobalt)
• Others

Market, By Battery Capacity

• Below 50 kWh
• 50-150 kWh
• Above 150 kWh

Market, By Battery Form Factor

• Prismatic cells
• Pouch cells
• Cylindrical cells

The above information is provided for the following regions and countries:

• U.S.
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming
• Canada
  • Alberta
  • British Columbia
  • Manitoba
  • New Brunswick
  • Newfoundland and Labrador
  • Nova Scotia
  • Ontario
  • Prince Edward Island
  • Quebec
  • Saskatchewan
  • Northwest Territories
  • Nunavut
  • Yukon