Electrovaya (NASDAQ:ELVA) plans to expand its battery manufacturing footprint and enter additional markets including data-center energy storage, robotics, airport ground-support equipment and defense, CFO John Gibson said during a company presentation.
The Mississauga, Ontario-based battery technology and manufacturing company is preparing to open its first U.S. manufacturing facility in Jamestown, New York. Gibson said the facility is expected to begin commissioning equipment in December and produce commercially viable products by the end of March or early April 2027.
Focus on Battery Safety and Longevity
According to Gibson, polymer separators can shrink when exposed to heat, potentially contributing to thermal runaway. Electrovaya’s ceramic separator is designed not to shrink under heat, he said, and the company has more than 40,000 batteries in operation with no safety incidents. He said the company’s claims have been tested by third parties including UL and TÜV.
Gibson said conventional lithium-ion batteries may deliver roughly 4,000 to 5,000 cycles, while Electrovaya’s offerings are designed for approximately 15,000 cycles. He said this can extend battery life in high-use applications from roughly two to four years to more than eight years.
In addition to safety and longevity, Gibson said Electrovaya batteries provide consistent power throughout their charge cycle, unlike lead-acid batteries, whose performance can decline as they discharge. The company’s material-handling customers include Amazon, Walmart and Home Depot, while its partners include Toyota, Raymond, Bastian Solutions and Jabil.
Jamestown Facility and Tax-Credit Opportunity
The Jamestown site is a 137,000-square-foot facility on a 52-acre campus, Gibson said. He said the location offers low-cost electricity, support from local and state entities, and room for future expansion.
Equipment for the facility was undergoing factory acceptance testing in Korea, according to Gibson. After testing is complete, the equipment is expected to be disassembled, shipped to Jamestown and installed there.
Gibson said the company has secured a CAD$51 million loan from the Export-Import Bank of the United States, or EXIM Bank, to fund equipment purchases for the plant. Electrovaya also refinanced working capital last year through a $25 million asset-based lending facility from the Bank of Montreal, he said.
Manufacturing at Jamestown is expected to qualify the company for Section 45X manufacturing tax credits, which Gibson estimated could provide about CAD$10 million annually in cash for products produced at the site. He said the company may seek to sell the credits in the secondary market because it does not expect to owe taxes.
Data-Center Energy Storage Expansion
Electrovaya recently announced a 1,500-volt DC energy-storage system aimed at data centers and warehouses. Gibson said the product is intended to manage short-duration power peaks and troughs, rather than provide multi-hour backup power typically associated with grid-scale battery-storage systems.
He said data centers generally have generator sets available for prolonged outages, while Electrovaya’s system is intended to respond quickly to changes in power demand that can last seconds or minutes. The company believes this capability could help maintain stable power delivery to data-center equipment and reduce costs associated with demand peaks.
Gibson said all of Electrovaya’s energy-storage systems will be manufactured in Jamestown once the plant is operational. He said purchasers of qualifying domestically produced systems could receive a 40% tax credit under Section 48E, covering the container, installation and utility connection.
The company also is developing a fast-charging cell for potential next-generation 800-volt data-center architectures. Gibson said the cell is intended to charge and discharge in less than five minutes and could be located close to chipsets or server racks. Deliveries of the company’s energy-storage products are expected in 2027, after the Jamestown facility is running.
Financial Position and Additional Markets
Gibson said material handling remains Electrovaya’s foundation, but the company is now using its improved financial position to pursue other applications. He cited robotics, airport ground-support equipment, defense and overseas opportunities, particularly in Japan, where Electrovaya works with Sumitomo Corporation.
He said the company reported trailing-12-month revenue of $72 million and adjusted EBITDA of $12 million. Electrovaya has maintained positive adjusted EBITDA for 13 consecutive quarters and positive earnings per share for six quarters, according to Gibson.
While management had previously issued guidance for 2026, Gibson said macroeconomic and geopolitical conditions had affected some customers’ capital-expenditure budgets, including spending related to airport ground-support equipment. He said Electrovaya expects the material-handling industry to grow by approximately 10% to 15% over the next year, with additional growth opportunities expected as the company expands into new verticals.
About Electrovaya (NASDAQ:ELVA)
Electrovaya is a Canada-based energy storage company that designs and manufactures advanced lithium-ion battery systems and components. The company’s core business revolves around the development of proprietary electrode and cell technologies that deliver high energy density, rapid charge capability and enhanced safety features. Electrovaya’s product portfolio encompasses large-format battery cells, modules, complete battery packs and integrated energy storage systems tailored to industrial, commercial and utility-scale applications.
In the industrial sector, Electrovaya supplies modular battery systems for material-handling equipment such as electric forklifts, automated guided vehicles and airport ground support vehicles.
