Electrovaya Receives Initial Purchase Orders from Global Japanese Construction Equipment Manufacturer

Rhea-AI Summary

Electrovaya Inc. (NASDAQ:ELVA)(TSX:ELVA.TO), a lithium ion battery technology and manufacturing company, has received its first purchase orders for pre-production battery modules from a global Japanese construction equipment manufacturer. These modules will be part of an electric excavator program with an estimated scaled production start in 2026. Initial shipments are expected to be delivered in Q2 FY2025 to a manufacturing site in Japan.

This order marks Electrovaya's entry into the construction vehicles market and the Japanese market. The order was received under the company's recently established supply agreement with a leading Japanese trading company. Electrovaya's CEO, Dr. Raj DasGupta, highlighted that their Infinity Technology, known for its leading cycle life and safety, is well-suited for electrified heavy-duty equipment used in construction.

Positive

• Entry into new market sector of construction vehicles
• Expansion into Japanese market
• First purchase orders received for pre-production battery modules
• Potential for scaled production starting in 2026
• Supply agreement established with leading Japanese trading company

Negative

• None.

Market Research Analyst

Electrovaya's entry into the Japanese construction equipment market marks a significant expansion of their business scope. This move aligns with the global trend towards electrification in heavy machinery, potentially opening up a vast new market for the company. The partnership with a leading Japanese trading company could facilitate smoother market penetration, leveraging local expertise and networks.

However, investors should note that full-scale production isn't expected until 2026, indicating a long runway before substantial revenue impact. The initial orders are for pre-production modules, suggesting we're still in early stages. While promising, this venture's success will depend on Electrovaya's ability to meet stringent Japanese quality standards and compete with established local players in a notoriously difficult market to penetrate.

Financial Analyst

This development represents a potential new revenue stream for Electrovaya, diversifying its product portfolio and geographical reach. Entering the construction equipment sector in Japan could significantly expand the company's addressable market. However, the financial impact in the short term is likely to be minimal, with meaningful revenue not expected until the 2026 production start.

Investors should focus on the long-term potential rather than immediate financial gains. Key metrics to watch in upcoming quarters include R&D expenses, which may increase to support this new product line and any updates on the expected volume of the full production run. The partnership with a Japanese trading company could also lead to reduced market entry costs, potentially improving long-term profitability in this new venture.

Tech Expert

Electrovaya's Infinity Technology seems well-suited for the demanding requirements of construction equipment. The emphasis on high power, safety and long cycle life aligns perfectly with the needs of heavy-duty electric machinery. This technological edge could be a significant differentiator in the competitive Japanese market.

However, adapting battery technology for construction equipment presents unique challenges, including extreme operating conditions, vibration resistance and rapid charging capabilities. The success of this venture will heavily depend on Electrovaya's ability to tailor their technology to these specific needs. The pre-production phase will be important for fine-tuning and demonstrating the technology's reliability in real-world construction applications. If successful, this could position Electrovaya as a key player in the electrification of heavy machinery globally.

Entry into a new market sector of construction vehicles and new geographical market of Japan

TORONTO, ON / ACCESSWIRE / September 10, 2024 / Electrovaya Inc. ("Electrovaya" or the "Company") (NASDAQ:ELVA)(TSX:ELVA.TO), a lithium ion battery technology and manufacturing company, today announced the receipt of its first purchase orders for pre-production battery modules to be provided to a global Japanese headquartered manufacturer of construction equipment. This will be part of an electric excavator program with an estimated scaled production start in 2026. The initial shipments are expected to be delivered in Q2 FY2025 to a manufacturing site in Japan.

The order was received under the Company's recently established supply agreement with a leading Japanese trading company.

"We are excited to start making deliveries for this new sector of electrified construction equipment and in a new market, Japan" said Dr. Raj DasGupta, CEO of Electrovaya. "Electrified heavy duty equipment, such as used in construction, requires batteries that are capable of delivering high power and safety over the lifecycle of the equipment. Electrovaya's Infinity Technology, with its leading cycle life and safety makes for an ideal match."

For more information, please contact:
Investor and Media Contact:
Jason Roy
VP, Corporate Development and Investor Relations
Electrovaya Inc.
jroy@electrovaya.com
905-855-4618

Brett Maas
Hayden IR
elva@haydenir.com
646-536-7331

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. The Company has extensive IP and designs, develops and manufactures proprietary lithium-ion batteries and battery systems for energy storage and heavy duty electric vehicles based on its Infinity Battery Technology Platform. This technology offers enhanced safety and industry leading battery longevity. The Company is also developing next generation solid state battery technology at its Labs division. Headquartered in Ontario, Canada, Electrovaya has two operating sites in Canada and has acquired a 52-acre site with a 135,000 square foot manufacturing facility in New York state for its planned gigafactory. To learn more about Electrovaya, please explore www.electrovaya.com.

Forward-Looking Statements
This press release contains forward-looking statements, including statements that relate to, among other things, revenue, purchase orders, revenue guidance, anticipated revenue contribution from 2026, mass production schedules, ability to deliver to customer requirements and revenue growth forecasts for the fiscal year ending September 30, 2025. 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. Statements with respect to the Company's intention to repay the promissory notes by the amended maturity date are based on an assumption that the Company will be able to repay the promissory notes by the amended maturity date. Factors that could cause actual results to differ materially from expectations include but are not limited to macroeconomic effects on the Company and its business, the Company's liquidity and cash availability in excess of its operational requirements, and the ability to generate and sustain sales orders. 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, 2023 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. 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 accesswire.com

FAQ

What new market sector has Electrovaya (ELVA) entered with its recent purchase orders?

Electrovaya (ELVA) has entered the construction vehicles market sector with its recent purchase orders for pre-production battery modules from a global Japanese construction equipment manufacturer.

When are the initial shipments of Electrovaya's (ELVA) battery modules expected to be delivered to Japan?

The initial shipments of Electrovaya's (ELVA) battery modules are expected to be delivered in Q2 FY2025 to a manufacturing site in Japan.

What is the estimated start date for scaled production of Electrovaya's (ELVA) electric excavator program?

The estimated start date for scaled production of Electrovaya's (ELVA) electric excavator program is 2026.

Which technology from Electrovaya (ELVA) is suitable for electrified heavy-duty construction equipment?

Electrovaya's (ELVA) Infinity Technology, known for its leading cycle life and safety, is suitable for electrified heavy-duty construction equipment.