Electrovaya provided the latest information on the planned New York Battery Super Factory.

Electrovaya provided the latest information on the planned New York Battery Super Factory.



Electrovaya is embarking on its largest manufacturing expansion in history. In March 2023, the company purchased a 52 acre plot of land in Jamestown, New York, with plans to develop a several gigawatt hour lithium-ion manufacturing park there. The factory will produce Electrovaya's Infinity series lithium-ion ceramic batteries, including the company's proprietary ceramic separators, batteries, modules, and battery systems.



The first phase of construction is expected to be carried out within the existing 135000 square feet of battery and battery pack production facilities, with an estimated capital expenditure of approximately $48 million. The company has signed a term sheet and agreement letter for the government's debt financing arrangement (the "arrangement") to support lenders.



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The total amount of debt financing (excluding grants and other incentives) will be led by the lending institution, which will provide more than 80% of the required capital for the first phase. According to the loan terms, Electrovaya hired a third-party engineering company to review the feasibility of the project.



This review has recently been completed and has achieved positive results. The loan agreement is expected to be completed in September or October 2023, pending the remaining legal and due diligence steps.



We believe that the planned super factory will bring significant benefits to Electrovaya:



Domestic manufacturing and supply chain security;

Every 1GWh of factory production can receive up to $45 million in inflation reduction bill rewards;

Increase in gross profit margin; and

The enhanced capabilities make the implementation of new battery technology more rapid.

The company has also received awards from jurisdictions such as the State of New York, the New York Electric Power Bureau, and Shotoqua County, totaling over $10 million.



Electrovaya plans to begin battery system assembly at the super factory in the first quarter of 2024 and battery assembly in the second quarter of 2025. Despite the progress made in the loan agreement, there can be no guarantee that the factory will close and Electrovaya will reach the milestones listed above.

 
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