Electrovaya to provide cells to bus battery OEM

2016-06-14 08:11 ET - News Release

Mr. Fritz Mueller reports
ELECTROVAYA'S SUBSIDIARY LITARION SIGNS MOU WITH A LEADING OEM, WITH OPERATIONS IN EUROPE AND ASIA, TO DELIVER LITHIUM ION CELLS FOR ELECTRIC BUSES

Electrovaya Inc.'s fully owned subsidiary Litarion GmbH has signed a memorandum of understanding (MOU) with a leading European battery original equipment manufacturer which designs and integrates battery systems for e-mobility applications especially electric buses. Electrovaya will provide its cells with unparalleled safety and cycle life performance to the OEM. The OEM will assemble the cells into electric bus batteries. Deliveries start in the fourth quarter of 2016 and then grow quickly into 2017. The MOU also sets out the specific cell pricing and specific cells sizes and energy capacity to be delivered to the OEM.

Typical electric bus batteries could be as large as 300 kilowatt-hours per bus and a recent market analyst estimates that the electric bus market will require about $32-billion of lithium-ion batteries in the next 10 years. Electrovaya's technology and products are uniquely suited to this electric mobility market as two of the critical performance parameters are highest cycle life and highest safety, both uniquely available from Electrovaya.

"We are pleased with this MOU, as this was achieved through intensive testing and validation against intense global competition," said Fritz Mueller, head of European sales. "We believe we will become a major supplier of lithium-ion cells and batteries to this emerging electric bus industrial sector," said Mr. Mueller. "Our OEM partner has production facilities in both China and Europe and capable of driving massive sales."