Dr. Rajshekar DasGupta reports

ELECTROVAYA SIGNS A LETTER OF INTENT WITH A MAJOR RESIDENTIAL ENERGY STORAGE PROVIDER FOR DELIVERY OF LITHIUM ION BATTERY MODULES FOR RESIDENTIAL ENERGY STORAGE OVER A PERIOD OF THREE YEARS FOR AN ESTIMATED TOTAL OF UP TO EURO 199 MILLION (US$ 223 MILLION)

Electrovaya Inc. has signed a letter of intent (LOI) with a global original equipment manufacturer (OEM) for the delivery of battery modules for residential energy storage with volume quantity deliveries starting early in the first quarter of 2017. Electrovaya will provide its battery modules with integrated cells and battery management systems (iBMS). Electrovaya's battery modules have unparalleled safety and cycle life performance, which is the critical performance required by the OEM.

The demand for Electrovaya's battery modules by this OEM is estimated to be up to 199 million euros ($288-million or $223-million (U.S.)) over a period of three years. High-volume deliveries are scheduled to start early in the first quarter of 2017 with smaller quantities with delivery in 2016.

Electrovaya's technology and products are uniquely suited to the residential energy storage market as two of the critical performance parameters are highest cycle life and safety, both uniquely available from Electrovaya.

This LOI was signed after intensive testing of the Electrovaya cells and modules by the OEM, who is one of the largest and fastest-growing residential energy storage companies in the world.

"We are very excited with this LOI as this was achieved against intense global competition," said Dr. Rajshekar DasGupta, vice-president of business development at Electrovaya. "Our multicell modules with laser-welded tabs, built-in sensors and iBMS are an attractive product for residential energy storage. Our flexible ceramic separator, Separion, imparts outstanding safety to lithium-ion batteries. This LOI further defines our path to becoming the leading supplier of lithium-ion cells and batteries to this fast-growing industrial sector of residential energy storage."

We seek Safe Harbor.