In a significant development for the electric vehicle industry, Workhorse, an innovative startup specializing in electric delivery vans, has received approval from Transport Canada to introduce its W56 and W750 models to commercial dealerships across Canada. The company initially unveiled the W56 at Indiana’s Work Truck Week in 2023 and has since secured contracts with major logistics firms such as FedEx and Pride Group, which ordered over six thousand units. With this new market entry, Workhorse aims to expand its presence in North America, including fleets that operate across borders. Despite potential challenges posed by recent trade tensions, Workhorse remains optimistic about the future of its zero-emission vehicles in Canada.
Electric Delivery Vans Make Their Way to Canadian Roads
In the coming spring, Canadian commercial truck dealers will soon be offering two new electric delivery van models from Workhorse: the W56 and W750. These vehicles have successfully completed Transport Canada’s rigorous safety compliance checks under the Appendix G clearance program, ensuring they meet all Canadian Motor Vehicle Safety Standards (CMVSS). This regulatory nod opens up a vast market for Workhorse within Canada and paves the way for cross-border operations.
The journey of these electric step vans began in 2023 when Workhorse first showcased the W56 medium-duty electric truck at Indiana’s Work Truck Week. Since then, the company has established itself as a reliable provider of eco-friendly transportation solutions, securing substantial orders from leading logistics companies. Notably, Pride Group placed an impressive order of more than six thousand electric vans back in 2021 and continues to grow its fleet.
Josh Anderson, Workhorse’s Chief Technology Officer, expressed enthusiasm about the company's progress. “This is a monumental achievement for us. Pre-clearance from Transport Canada not only expands our market reach but also reinforces our commitment to delivering dependable, zero-emission vehicles,” he stated. Although pricing details for the Canadian market are yet to be disclosed, Workhorse executives are confident that their electric delivery vans will offer valuable, sustainable solutions for businesses across the country.
From a broader perspective, the entry of Workhorse into the Canadian market underscores the growing demand for environmentally friendly transportation options. As the world grapples with climate change and environmental concerns, the shift towards electric vehicles represents a positive step toward reducing carbon emissions and fostering sustainability. While uncertainties surrounding trade policies may present challenges, the overall trend towards greener technologies is undeniable. For Workhorse, this expansion marks a pivotal moment in its mission to transform the logistics and delivery sectors with innovative, eco-conscious solutions.
The battery industry is undergoing a transformative phase, driven by the exponential growth in electric vehicle (EV) sales. According to recent data, EV sales are expected to reach 17 million units in 2024, marking a 25% increase from the previous year. This surge has propelled annual battery demand to surpass one terawatt-hour for the first time. Although various types of batteries contribute to this figure, the lion's share—approximately 85%—comes from the burgeoning EV market. The cost of battery packs has also seen a significant reduction, dropping below $100 per kilowatt-hour, which experts consider a critical threshold for competing with traditional vehicles. Key factors contributing to this decline include cheaper raw materials and advancements in manufacturing technology.
Beyond the numbers, the global battery market is witnessing structural changes that reflect its rapid expansion. Historically, the market was characterized by regional fragmentation and limited scale. Today, it has evolved into a global powerhouse, with an emphasis on standardization and efficiency. Analysts predict that economies of scale, strategic partnerships along the supply chain, and rapid innovation will be pivotal in maintaining competitiveness. China remains the dominant player, accounting for over three-quarters of global battery production. Chinese manufacturers have achieved substantial cost reductions, with prices falling by nearly 30% in the past year. Factors such as extensive manufacturing experience, integrated supply chains, and fierce domestic competition have contributed to this advantage. However, the IEA anticipates that consolidation may slow future price drops, granting some manufacturers greater pricing power.
The competitive landscape is shifting rapidly, particularly in Europe and North America. European producers face challenges due to higher production costs and a relatively weak supply chain ecosystem. Despite these hurdles, there is optimism that clear policy support and growing domestic demand could help bridge the gap with Asian competitors. Meanwhile, the United States has doubled its battery production capacity since 2022, thanks to government incentives like tax credits. Yet, the development of domestic component production lags behind, leading to continued reliance on imports. As the industry evolves, regions like Southeast Asia and Morocco are emerging as potential hubs for battery production. Overall, the battery sector's future looks promising, with innovations and policy support driving sustainable growth and reshaping global supply chains.