Most transfer cases are not designed to shift in motion. Most transfer cases are designed to disengage the gearbox from the front axle, but locking hubs disconnect the wheels from the front axle. Some front axles don't have locking hubs, instead having an axle shaft disconnect, that, when coupled with the t-case disconnect allows one axle shaft to spin freely, while the other axle shaft spins the spider gears in the differential.
Also, most transfer cases are designed to attach directly to the transmission ("married") and don't provide much support in themselves for supporting the transmission or engine weight, and would need to be reinforced to support its share of the motor weight. Other transfer cases attach to the transmission by a "stub" driveshaft ("divorced") and may be a better candidate for EV converion in that method.
Quite some time back when my jeep's factory transmission gave up the ghost, I toyed with the idea of mating a motor direct to the t-case, but gave up on the idea because I would either have to run in low gear (which that tcase is not designed for extended periods of high shaft speeds in low gear) or greatly lower the differential gearing. In addition to that, it's a short wheelbase CJ5 already prone to rollover, and several hundred or even 1000 lbs of batteries would only serve to make that worse.
As I always say- nobody is stopping anyone from converting whatever they want to convert, but as they say in the ICE world... your mileage may vary.
