Canadian Battery Maker Electrovaya Plans Major Production Capacity Expansion with Acquisition.
The company plans to purchase 0.5Gigawatt hours (GWh) of capacity at a fraction of the tangible asset value. Electrovaya plans to acquire the assets of a state-of-the-art manufacturing plant for lithium ion electrodes and other products. The plant's output, when converted into battery systems, has a revenue capacity of up to $250-$550 million. This is a transformational acquisition for Electrovaya as it instantly brings best-in-class manufacturing scale capacity to meet soaring demand for the Company’s energy storage products.
The highlights of the Acquisition are:
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 unique non-toxic manufacturing technology, which completely eliminates NMP, will enable this best-in-class plant to become the lowest cost producer as well as the greenest large manufacturer on the planet. It is estimated that the processing costs of the plant will be reduced by over 50% and its energy costs by over 80%.
Electrovaya designs, develops and manufactures proprietary Lithium Ion Super PolymerŪ batteries, battery systems, and battery-related products for energy storage, clean electric transportation, Utility Scale Energy Storage and smart grid power, consumer and healthcare markets. (11/17/14)
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