Electrovaya Closes $50.8 Million Direct Loan with Export-Import Bank of the United States (“EXIM”) to Expand U.S. Battery Manufacturing

Rhea-AI Summary

Electrovaya (NASDAQ/TSX: ELVA) has secured a US$50.8 million direct loan from the Export-Import Bank of the United States (EXIM) to expand its battery manufacturing operations in Jamestown, New York. This funding, part of EXIM's 'Make More in America' initiative, combined with a $20 million BMO credit facility and $12 million equity capital, provides over $80 million for U.S. expansion.

The six-year loan includes one year of interest-only payments followed by five years of interest and principal payments, with an expected interest rate between 6-7% annually. The proceeds will fund $46.4 million for manufacturing and $5.3 million for construction and engineering.

The Jamestown facility, powered by renewable hydro electricity, will produce Infinity lithium-ion ceramic cells and is expected to create over 250 jobs. Commercial shipments are anticipated to begin in 2026, with battery system assembly starting in Q2 2025. The facility will support exports to Japan, Canada, and Australia while strengthening U.S. lithium-ion battery supply chains.

Positive

• Secured substantial funding package totaling over $80 million for expansion
• Facility will enable vertical integration, potentially improving profit margins
• Access to low-cost renewable hydro electricity for manufacturing operations
• Met conditions to begin loan drawdowns, indicating project readiness
• Strong demand reported from heavy duty and mission-critical applications

Negative

• Additional debt burden with 6-7% interest rate
• Significant delay until full commercial production (2026)
• Large capital expenditure requirements for facility setup

Insights

Financial Analyst

The $50.8 million EXIM loan represents a transformative development for Electrovaya, effectively doubling the company's available capital relative to its $87 million market cap. When combined with the $20 million BMO credit facility and $12 million in recent equity financing, Electrovaya has secured over $80 million for its manufacturing expansion - a war chest that dramatically enhances its growth trajectory.

The loan structure demonstrates financial prudence with its one-year interest-only period, creating breathing room during the capital-intensive construction phase before full principal payments begin. The 6-7% interest rate is reasonable in today's environment for a company of Electrovaya's size and stage.

This vertical integration into cell manufacturing addresses a critical strategic need. By producing its proprietary Infinity lithium-ion ceramic cells in-house, Electrovaya can potentially improve gross margins while securing its supply chain - particularly important given global battery material constraints. The Jamestown facility's use of low-cost renewable hydroelectric power should provide an ongoing operational cost advantage.

The timeline indicates battery system assembly beginning in Q2 2025 with full cell production by 2026, suggesting a methodical implementation strategy with revenue impact building gradually. While this financing significantly enhances growth potential, it also increases financial leverage and execution risk that must be carefully managed as Electrovaya scales its manufacturing operations.

Manufacturing Specialist

Electrovaya's manufacturing expansion represents a significant industrial development in the U.S. battery production landscape. The $46.4 million allocated specifically for lithium-ion cell, module and battery pack manufacturing equipment indicates a substantial production capacity buildout that will meaningfully impact Electrovaya's output potential.

The company's phased approach - beginning with battery system assembly in Q2 2025 before advancing to full cell production in 2026 - follows industrial best practices for complex manufacturing scale-ups. This sequential implementation reduces operational risk while allowing earlier revenue generation from assembly operations while cell production ramps up.

The projected 250+ jobs created signals a sizeable manufacturing operation, suggesting Electrovaya anticipates substantial production volume. The Jamestown facility's strategic positioning to leverage regional supply chains for lithium-ion battery materials will provide logistical advantages while supporting the broader U.S. battery ecosystem.

By controlling its entire production stack from cells to finished battery systems, Electrovaya gains important quality control capabilities particularly important for its focus on longevity and safety-critical applications. The vertical integration strategy, while execution-intensive, typically yields 15-25% margin improvements once at scale compared to assembly-only operations, potentially transforming Electrovaya's unit economics once fully operational.

Funding Under EXIM‘s Make More in America Initiative to Fuel Expansion of Electrovaya's Jamestown Battery Manufacturing Facility

Combination of EXIM Funding with $20 million BMO Credit Facility and $12 Million Equity Capital from December 2024 Provides Electrovaya with Over $80 million for Aggressive U.S. Expansion

Electrovaya has Met Substantially All Condition Precedent Requirements to Drawdown on the EXIM Facility

JAMESTOWN, NEW YORK / ACCESS Newswire / March 10, 2025 / Electrovaya Inc. ("Electrovaya" or the "Company") (NASDAQ:ELVA)(TSX:ELVA), a leading lithium-ion battery technology and manufacturing company, is pleased to announce that it has closed a direct loan in the amount of US$50.8 million from the Export-Import Bank of the United States ("EXIM") under the bank's ‘Make More in America' initiative. The Company has also met substantially all of EXIM's condition precedents required to begin drawdowns on the loan.

This financing will fund Electrovaya's battery manufacturing buildout in Jamestown, New York including equipment, engineering and setup costs for the facility. Electrovaya has rapidly increasing demand for its products from a wide range of heavy duty and mission critical electrified applications, and it has been a priority of the Company to expand its manufacturing operations in the United States for these vital products. The Company's manufacturing facility in Jamestown is scheduled to produce Electrovaya's proprietary Infinity lithium-ion ceramic cells, which offer industry leading longevity and safety.

The battery manufacturing facility in Jamestown is expected to lead to over 250 jobs and support Electrovaya's exports to Japan, Canada and Australia. Furthermore, the facility will both benefit from and help support developing supply chains in the US for lithium-ion battery production.

Key Features of the Agreement:

• Loan Amount: $50.8 million

• Term: Six years following drawdown period including one year of interest only payments followed by five years of interest and principal payments.

• Effective Interest Rate: To be finalized prior to the first disbursement but expected to be between 6 and 7 percent annualized.

• Use of Proceeds: $46.4 million for lithium-ion cell, module and battery pack manufacturing, $5.3 million for construction and engineering.

• Other Key Terms: Intercreditor agreement with the Bank of Montreal ("BMO"), who is providing a $20.0 million facility to support working capital requirements.

"The funding from EXIM is a game changer and instrumental for our capacity expansion strategy of lithium-ion cell production in the United States," said Dr. Raj DasGupta, CEO of Electrovaya. "Our facility in Jamestown is powered by low cost renewable hydro electricity and will produce the longest lasting and safest lithium-ion cells in the world when it starts commercial shipments in 2026. We expect this expansion to support our plans for exponential growth and lead to improvements in our margins through vertical integration. We are also well underway with the start of battery system assembly in Jamestown, which is anticipated to start in Q2 CY2025."​

Investor and Media Contact:

Jason Roy
VP, Corporate Development and Investor Relations
Electrovaya Inc.
905-855-4618 / jroy@electrovaya.com

About Electrovaya Inc.

Electrovaya Inc. (NASDAQ:ELVA)(TSX:ELVA) is a pioneering leader in the global energy transformation, focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries without compromising energy and power. The Company has extensive IP and designs, develops and manufactures proprietary lithium-ion batteries, battery systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications. Electrovaya has two operating sites in Canada and a 52-acre site with a 135,000 square foot manufacturing facility in Jamestown New York state for its planned gigafactory. To learn more about how Electrovaya is powering mobility and energy storage, please explore www.electrovaya.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements that relate to, among other things, other financial projections, working capital, cost of capital, cash flow anticipated in FY 2025, the Company's requirements for additional financing, purchase orders, mass production schedules, funding from EXIM, use of proceeds of the EXIM facility, use of proceeds for the working capital Facility, ability to utilize the accordion for $25 million, ability to sustain a long term partnership with EXIM and BMO, ability to export battery products to international customers, ability to deliver to customer requirements. Forward-looking statements can generally, but not always, be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "possible", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors and assumptions are applied in making forward looking statements, and actual results may differ materially from those expressed or implied in such statements. In making the forward-looking statements included in this news release, the Company has made various material assumptions, including but not limited to assumptions with respect to the Company's customers deploying its products in accordance with communicated intentions, the Company's customers completing new distribution centres in accordance with communicated expectations, intentions and plans, anticipated new orders in FY 2025 based on customers' historical patterns and additional demand communicated to the Company and its partners, the Company's ability to successfully execute its plans and intentions, including with respect to the entry into new business segments and servicing existing customers, the availability to obtain financing on reasonable commercial terms, including the EXIM facility. Factors that could cause actual results to differ materially from expectations include but are not limited to customers not placing orders roughly in accordance with historical ordering patterns and communicated intentions, macroeconomic effects on the Company and its business, and on the lithium battery industry generally, not being able to obtain financing on reasonable commercial terms or at all, including not being able to satisfy any condition of drawdowns under the EXIM facility, that the Company's products will not perform as expected, supply and demand fundamentals for lithium-ion batteries, the risk of interest rate increases, persistent inflation in the United States and Canada and other macroeconomic challenges, the political, economic, and regulatory and business stability of, or otherwise affecting, the jurisdictions in which the Company operates, including new tariff regimes. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company's Annual Information Form for the year ended September 30, 2024 under "Risk Factors", and in the Company's most recent annual and interim Management's Discussion and Analysis under "Qualitative And Quantitative Disclosures about Risk and Uncertainties" as well as in other public disclosure documents filed with Canadian securities regulatory authorities and filed or furnished with the SEC.. The Company does not undertake any obligation to update publicly or to revise any of the forward looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: Electrovaya, Inc.

View the original press release on ACCESS Newswire

FAQ

How much funding did Electrovaya (ELVA) secure from EXIM Bank for its U.S. expansion?

Electrovaya secured a US$50.8 million direct loan from EXIM Bank under their 'Make More in America' initiative.

When will Electrovaya's Jamestown facility begin commercial shipments of lithium-ion cells?

Commercial shipments from the Jamestown facility are scheduled to begin in 2026.

How many jobs will Electrovaya's new Jamestown manufacturing facility create?

The Jamestown manufacturing facility is expected to create over 250 jobs.

What are the terms of ELVA's EXIM Bank loan for the Jamestown facility?

The loan has a six-year term with 6-7% interest rate, including one year of interest-only payments followed by five years of interest and principal payments.

How will the EXIM funding be allocated for Electrovaya's Jamestown facility?

$46.4 million will go to manufacturing operations and $5.3 million for construction and engineering.