Mr. Fritz Mueller reports

ELECTROVAYA'S SUBSIDIARY LITARION SIGNS MOU WITH A MAJOR OEM IN THE E-MOBILITY INDUSTRY, FOR THE DELIVERY OF LITHIUM ION BATTERY MODULES

Electrovaya Inc.'s wholly owned subsidiary, Litarion GmbH, has signed a memorandum of understanding with a major original equipment manufacturer in the e-mobility (electric mobility) industry for the delivery of battery modules starting in 2017. Electrovaya will provide its battery modules, which deliver unparalleled safety and cycle life performance to this major OEM. Its demand is estimated to be about 37 million euros in the first year and growing quickly thereafter.

Electrovaya's technology and products are uniquely suited to this electric mobility market as two of the critical performance parameters are highest cycle life and highest safety, both uniquely available from Electrovaya. Electrovaya's proprietary flexible ceramic separator, Separion, provides highest safety in lithium-ion batteries.

"We are pleased with this multiyear MOU, as this was achieved against strong competition, for this globally prominent major OEM in the electric mobility sector," said Fritz Mueller, head of European sales. "Our multicell modules, with laser-welded tabs and built-in sensors, are an attractive product for OEMs, who can use them as building blocks for many diverse battery applications in e-mobility. Our flexible ceramic separator, Separion, imparts outstanding safety to lithium-ion batteries. This MOU further strengthens our reach into multiple industrial sectors and we are pleased in achieving this breakthrough into the electric mobility market with this major OEM."

We seek Safe Harbor.