Electrovaya Inc. announced plans to acquire the assets of a battery manufacturing plant with annual capacity of about 0.5 Gigawatt hours (GWh). The plant’s output, when converted into battery systems, has a revenue capacity of up to $250-$550 million. This is a transformational project for Electrovaya as it instantly brings manufacturing capacity to meet demand for the company’s energy storage products.
The highlights of the acquisition are:
Modular facility built recently with hundreds of millions of dollars invested; tangible assets of more than $100 million and a strong operating company.
A profitable ongoing contract to key customer with annual revenue of ~$30 million.
Revenue capacity of up to $250 million to $550 million for battery systems with 0.5 Gigawatt hour (GWh) nominal energy storage capacity.
Acquiring experienced management team to manage operations and growth.
Total purchase price is a small fraction of the tangible asset value.
Financing is planned through debt and grants.
Products from this captive plant will now be expanded to broader markets including utilities, energy storage of wind and solar, aerospace, micro-grids, marine and automotive industries while maintaining supply to its present customer. This large volume facility and its seasoned management team will drive key energy storage revenues globally.
Conventional lithium ion manufacturing plants use large quantities of toxic NMP (n-methyl-pyrrolidone), now suspected of causing birth defects and increasing operating costs, capital costs and future liabilities. Electrovaya’s non-toxic production process will remove the toxic NMP in the plant. Electrovaya claims that its unique non-toxic manufacturing technology will enable this plant to become the lowest cost producer as well as the greenest large manufacturer on the planet. Electrovaya estimates that the processing costs of the plant will be reduced by more than 50% and its energy costs by over 80%.