Electrovaya secures $4.2 million battery order

TORONTO - Electrovaya Inc. (NASDAQ:ELVA)(TSX:ELVA), a lithium-ion battery technology and manufacturing company with annual revenue of $43.69 million and a market capitalization of $83.51 million, has announced a new purchase order valued at approximately US$4.2 million. According to InvestingPro analysis, the company maintains a healthy financial position with liquid assets exceeding short-term obligations. The order, received through its OEM sales channel, is for batteries to be used by a U.S. based cold storage third-party logistics operator to power their material handling electric vehicles.

The logistics operator, a repeat customer, currently operates six facilities equipped with Electrovaya’s battery technology. This new order contributes to over $13 million in purchases by the end user, with additional plans to incorporate Electrovaya’s batteries into both existing and newly constructed sites. The company operates with a moderate debt-to-equity ratio of 0.87, suggesting a balanced approach to growth financing.

Dr. Jeremy Dang, Vice President of Business Development at Electrovaya, expressed the company’s pleasure in continuing their relationship with the customer, stating they value Electrovaya’s leading-edge technology solutions. The company anticipates further opportunities to provide power solutions to the customer’s expanding network of facilities.

Electrovaya, headquartered in Ontario, Canada, is known for its proprietary lithium-ion batteries and battery systems for energy storage and heavy-duty electric vehicles. They are also developing next-generation solid-state battery technology. With two operating sites in Canada and a planned gigafactory in New York state, Electrovaya aims to contribute to climate change prevention by offering safe and long-lasting battery solutions.

The press release also contained forward-looking statements regarding potential future purchase orders and growth in customer demand during the calendar year 2025. However, these statements are subject to various risks and uncertainties, and actual results may differ materially from those projected.

This news piece is based on a press release statement from Electrovaya Inc. and has been reported without bias or promotional language to provide a factual account of the company’s recent business transaction. While currently not profitable, InvestingPro data indicates analysts expect the company to achieve profitability this year, with projected EPS of $0.11. For deeper insights into Electrovaya’s financial health and growth prospects, including 13 additional exclusive ProTips and comprehensive valuation metrics, explore the detailed Pro Research Report available on InvestingPro.

In other recent news, Electrovaya Inc. reported an operational update through its latest SEC Form 6-K filing. The filing did not disclose specific financial figures but confirmed the company’s compliance with regulatory requirements. H.C. Wainwright adjusted its outlook on Electrovaya, reducing the price target from $16.00 to $10.00 while maintaining a Buy rating. The revision reflects a fiscal year 2025 revenue guidance of $60 million, below the previous projection of $105 million, due to challenges like construction delays and funding issues for its Jamestown facility. Despite these challenges, Electrovaya reported improved gross margins, from 26.9% in fiscal year 2023 to 30.7% in fiscal year 2024. Raymond (NSE:RYMD) James initiated coverage with a strong buy rating and a price target of $4.50, highlighting Electrovaya’s unique market position in the material handling electric vehicle sector. The firm expressed optimism about the company’s potential growth and future plans, including the development of solid-state battery technology. Electrovaya’s focus on specialized markets and its recent developments have drawn attention from investors, with analysts showing confidence in its long-term prospects.

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