Electrovaya Receives Purchase Orders for Batteries From Fortune 500 Customer for Re-Powering Two Existing Distribution Centers

Rhea-AI Summary

Electrovaya (NASDAQ/TSX: ELVA) has secured a US$4.1 million purchase order for batteries from a Fortune 500 retailer in the United States. The batteries will power material handling electric vehicles at two warehouse sites. The customer, which has been using Electrovaya's batteries since 2022 with over 1,000 units in operation, plans to convert additional distribution centers' fleets in 2025. This order marks the beginning of the customer's fleet conversion strategy, with four more sites planned for future conversion.

Positive

• Secured significant US$4.1 million purchase order
• Expanding business relationship with Fortune 500 customer
• Customer plans to convert four additional sites, indicating potential future orders
• Strong existing customer relationship with over 1,000 batteries already in operation

Negative

• None.

Insights

Financial Analyst

This $4.1 million purchase order from a Fortune 500 retailer marks a significant milestone for Electrovaya, representing both immediate revenue and strong growth potential. The deal's importance extends beyond its monetary value - it validates the company's technology and market position in the material handling sector. With over 1,000 batteries already deployed since 2022 and plans for four additional sites, this signals a robust expansion of the existing relationship. The repeat order demonstrates strong customer satisfaction and positions Electrovaya favorably for capturing a larger share of the customer's fleet conversion initiatives. For a company with a market cap of $90.1 million, this single order represents approximately 4.5% of its market value, making it a material development that could positively impact near-term financial performance.

Market Research Analyst

This deal highlights the accelerating trend of warehouse electrification and fleet conversion in the retail sector. The Fortune 500 customer's commitment to expanding deployments across multiple distribution centers reflects the broader industry shift toward sustainable energy solutions in logistics operations. The strategic importance lies in the potential for recurring revenue through fleet-wide implementations. With two distribution centers secured and four more planned, Electrovaya is establishing itself as a trusted partner in the retail logistics sector. This could serve as a reference case for other major retailers looking to convert their material handling fleets, potentially opening doors to similar large-scale deployments across the industry.

This purchase order, valued at $4.1million, represents the start of the customer's fleet conversion strategy with another four additional sites being planned

TORONTO, ON / ACCESSWIRE / December 3, 2024 / Electrovaya Inc. ("Electrovaya" or the "Company") (NASDAQ:ELVA)(TSX:ELVA), a leading lithium-ion battery technology and manufacturing company, today announced it has received a purchase order valued at approximately US$4.1 million for immediate delivery of its batteries. The batteries will be used by a leading Fortune 500 retailer in the United States for powering material handling electric vehicles in two existing warehouse sites. Additional sites are also being planned for conversion on top of the two orders received.

"We are very pleased to announce this repeat order with a leading retailer and more importantly, to elevate this relationship towards achieving their energy efficiency initiatives," said Dr. Jeremy Dang, Vice President of Business Development at Electrovaya. "This customer has been one of the largest users of our batteries since 2022 with over 1000 batteries in operation and with further intentions to re-power additional distribution centers' fleets in 2025. This order is a testament of Electrovaya's commitment to providing industry leading battery solutions to our customers."

Investor and Media, please contact:

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

Brett Maas, Managing Partner
Hayden IR
646-536-7331
brett@haydenir.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. 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, the potential for additional purchase orders from the described customer in CY 2025, order growth and customer demand in FY 2025, future business opportunities, and the 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", "planned", "objective", "estimated" 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, assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate are necessarily applied in making forward looking statements and such statements are subject to risks and uncertainties, therefore actual results may differ materially from those expressed or implied in such statements and undue reliance should not be placed on such statements. Material assumptions made in disclosing the forward-looking statements included in this news release include, but are not limited to assumptions that the Company's customers will deploy its products in accordance with communicated timing and volumes, that the Company's customers will complete new distribution centers in accordance with communicated expectations, intentions and plans, and stable political climate with respect to exports from Canada to the United. Factors that could cause actual results to differ materially from expectations include but are not limited to customers not placing roughly in accordance with historical ordering patterns and communicated intentions, the fact that the expected additional sales from the described customer are expressions of interest and not yet purchase orders, the uncertain effects of the imposition of a new tariff regime on Canadian exports by the United States, macroeconomic effects on the Company and its business and on the lithium battery industry generally, 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", in the Company's base shelf prospectus dated September 17, 2024, 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 is the value of Electrovaya's (ELVA) recent battery purchase order?

Electrovaya received a purchase order valued at approximately US$4.1 million for immediate battery delivery.

How many Electrovaya (ELVA) batteries are currently in operation with this Fortune 500 customer?

The customer has been using over 1,000 Electrovaya batteries since 2022.

How many additional sites does the Fortune 500 customer plan to convert with Electrovaya (ELVA) batteries?

The customer plans to convert four additional distribution center sites beyond the current two-site order.

What will Electrovaya's (ELVA) batteries be used for in this purchase order?

The batteries will be used for powering material handling electric vehicles in two warehouse sites.