Frequently Asked Questions About Lion Electric and Electric School Buses

The electric school bus industry is growing strong, with demand for the quieter, cleaner ride of zero-tailpipe-emission electric school buses building among communities, parents, students, drivers and more.

Unfortunately, and for reasons unique to the company, Lion Electric, a Quebec-based manufacturer of all-electric school buses (ESBs) and trucks, underwent bankruptcy proceedings in early 2025 after halting operations and laying off employees at its U.S. manufacturing facility in Joliet, Illinois. LION, as it has been rebranded, has indicated it will not honor U.S. warranties and purchase orders and will produce only from its Canadian manufacturing plant.

These developments have left school districts and other entities with Lion Electric school buses (or those expecting them) wondering what happens next. This set of FAQs is meant to help navigate this continually developing situation.

All of the following observations are based on news sources and other publicly available information and reflect our best understanding of the fluid situation. The information on this page is intended for audiences in the United States, and Canadian organizations may have different circumstances. Nothing below should be construed as legal, operational or financial advice.

Frequently Asked Questions

What is Lion Electric and what is happening with the company?

Lion Electric, now called LION, is a Quebec-based manufacturer of all-electric school buses and trucks that owns a production facility in Canada and previously built and operated a facility in Joliet, Illinois.

The company declared bankruptcy in late 2024. In May 2025, a new group of investors purchased Lion Electric to prevent what might have been a full liquidation and  allow electric school bus production to continue at the company’s facility in Saint Jerome, Quebec. Lion Electric’s previous operations in Joliet, Illinois, have been shut down. In a July 2025 letter from Deloitte, Lion Electric’s restructuring firm, clients and creditors were notified that all U.S. warranties and purchase orders will not be honored by the new company.

Will Lion Electric honor warranties to service existing electric school buses?

In July 2025, Deloitte Restructuring, which was appointed to monitor Lion’s business and finances, explained in a letter to interested parties that, “All warranties and purchase orders that you could have with the Lion Group are therefore not being legally assumed by the company post transaction.”

As such, it is our current understanding that U.S. Lion Electric warranties will not be honored, though we will continue to monitor this aspect of the bankruptcy.

However, there are steps identified below that school districts and Lion Electric school bus operators can consider to mitigate the bankruptcy’s impact. 

What does this mean for school districts and others who currently have Lion Electric school buses?

Impacted school districts and entities with Lion Electric school buses can consider the following:

• Fill in the intake form led by CALSTART, a national clean transportation non-profit organization, to learn and share any resources here. This form will put you in touch with CALSTART’s Electric School Bus Network, WRI’s Electric School Bus Initiative and the Alliance for Electric School Buses, who are working together to learn about the needs of school districts with Lion Electric school buses and offer support.
• Contact LION to inquire about details on servicing and parts.
• Review existing purchase agreements and contracts to understand what obligations Lion Electric should have been fulfilling over the life of the electric school bus.
• Talk with your district’s contract or legal team about your options for service guarantees.
• Reach out to any third-party service providers like private contractors and fleet maintenance services to learn more about potential costs and options for continued service.
• Reach out to local dealers and other manufacturers to learn more about if they offer service for Lion Electric school buses.
• Contact other school districts that you know with Lion Electric school buses to learn about their planned next steps.
• Schedule a call with our team to help us learn more about your situation and to get advice on next steps.
• Seek or maintain critical information on your existing Lion Electric school buses for future maintenance, upkeep, spare parts and troubleshooting. This might include things like:
  • Documentation (detailed owner’s manuals, safety sheets, specs and operator guides)
  • List of third-party suppliers (companies that Lion Electric used to make its electric school buses, including suppliers of batteries, powertrain subcomponents, windshields, telemetry and other components)
  • List of components (like a Bill of Materials, MSDS sheet and/or similar lists from Lion Electric)
  • Technician training (Lion Academy or similar training content and documentation, third-party electric vehicle safety basics training)
  • Recommended qualified service providers (any shops, consultants or providers of electric school bus or electric vehicle repairs)

There are other steps that Lion Electric school bus owners or purchasers can take, including retaining legal support, seeking accounting advice, communicating with the new LION entity, identifying qualified electric school buses maintenance and service companies, and offering EV safety training programs for district technicians, such as those at a community college.

What happens if an entity has a Lion Electric school bus on order or was awarded funding to buy one that hasn’t been ordered or delivered?

School districts and entities with Lion Electric school buses that are awaiting delivery, on order or have been pre-ordered should review the details of their contract and decide on their next steps. 
For school districts and other entities who were awarded funding to purchase Lion Electric school buses through government funding programs, the next steps will depend on the status of their funds and how the funding was awarded. For awards under the U.S. Clean School Bus Program:

• School districts who were directly awarded funding to purchase electric school buses from Lion Electric, but who have not yet submitted a Payment Request Form, should reach out to EPA to ask about changing their Purchase Order to another manufacturer.
• School districts whose funding has already been drawn down but who have not received their Lion buses should contact EPA to learn about their options and if their award can be transferred to another manufacturer.
• In cases when Lion Electric applied on a district’s behalf and the company was awarded the funds, the district should reach out to EPA to ask about transferring the award to another entity. That entity might be the district itself or another manufacturer, and districts should ask about their options.

These districts may also want to reach out to local electric school bus dealers to find out their options for electric school buses from other manufacturers. School districts may also want to talk with other affected districts to determine what actions others are planning. Our team is also available to help school districts, who can schedule a call with our team on our website.

What service offerings are available for school districts or other organizations with Lion Electric school buses or orders?

A number of private companies have said that they are available to offer various types of support for school districts and entities that have ordered or procured Lion Electric school buses. WRI’s Electric School Bus Initiative has not individually reviewed the service offerings from these providers, and you should carefully determine whether they would meet your needs:

• Fleet EForce (provides service and repair, remote support, spare parts, training and more for Lion Electric school buses and other electric vehicle brands)
• Highland Electric’s Aftermarket Buyout & Service Program (provides aftermarket electric bus fleet support and service)
• First Student Fleet Maintenance (contact company for more details)

This is not an exhaustive list. Please contact ESBinfo@wri.org if you are aware of other service offerings that could be included here.

Why did this happen to Lion?

We’re only aware of what’s been publicly reported about Lion Electric’s financial situation.
 
There are a variety of factors that may have contributed to Lion’s current condition. An August 2024 news report and Lion’s public filings and earning calls suggest cash flow problems that led to layoffs earlier this year. Another news report cites supply chain disruptions, scaling issues, a dispute with a battery supplier and financing needs as factors contributing to Lion’s financial situation. Other public reporting lists third-party supplier dependence and external market forces including high interest rates as having contributed to cash flow and financing limitations.

What does this mean for the future of electric school bus manufacturing?

The rest of the electric school bus industry continues to grow.

The reported Lion Electric issues appear to be unique to the company. Many other electric school bus manufacturers have not reported these types of financial problems and have expanded their production of electric school buses to keep pace with demand.  

Notably, other major manufacturers could likely scale their electric school bus offerings given that similar manufacturing lines are used to produce both diesel-burning and electric school buses. 

• Other companies within the electric school bus ecosystem have reported positive earnings statements in recent quarters and improved financial forecasts based on growth in the electric school bus market.
• Suppliers of the electric school bus value chain are also seeing growth. From charging manufacturers to software companies and electric fleet operators, the ecosystem has grown tremendously in recent years.
• There remains strong demand for electric school buses from communities, parents and students, given the health benefits of electric school buses.