Electrovaya signs Supply Agreement and a Strategic Supplier Agreement with a Global OEM for Residential Energy Storage Applications

2016-10-19 07:12 ET - News Release

TORONTO, ON -- (Marketwired) -- 10/19/16

Electrovaya Inc. (TSX: EFL) (OTCQX: EFLVF) and its wholly owned subsidiary Litarion GmbH ("Litarion"), announced they have signed a Strategic Supplier Agreement and a Supply Agreement (collectively, the "Agreements") with a global original equipment manufacturer (the "Global OEM"), who is one of the market leaders for Residential Energy Storage. The Agreements follow the press release of Electrovaya dated June 15, 2016 announcing the letter of intent, which letter of intent was further described in Electrovaya's press release dated August 11, 2016 under the second bullet following the heading 'Business Highlights'.

Electrovaya will supply 48V LITASTORE battery modules to the Global OEM if, as and when the Global OEM delivers purchase orders under the Agreements. Prior to the execution of the Agreements, Electrovaya completed, shipped and billed the Global OEM for prototypes delivered by Electrovaya.

The Supply Agreement contains tiered volume and pricing. Should the maximum volume anticipated in the volume pricing schedule be achieved this would result in EUR199 million being the potential value of the agreement over a three-year period. There is no assurance, however, that the Global OEM will order nor Electrovaya supply to this extent.

Electrovaya's technology and products are uniquely suited to the fast-growing Residential Energy Storage market as two of the critical performance parameters are highest cycle life and safety, both uniquely available from Electrovaya.

"We are very excited with this contract, as this was achieved against intense global competition and with a fast-growing leader in Residential Energy Storage", said Dr. Rajshekar DasGupta, VP of Business Development at Electrovaya. "Our LITASTORE line of modules powered by our latest LC-44 cells are an attractive product for Residential Energy Storage due to class leading cycle life, performance and safety."