Mr. Andre Mecklenburg reports

ELECTROVAYA'S SUBSIDIARY LITARION GMBH ANNOUNCES A SUPPLY AGREEMENT FOR GRAPHITE NMC LITHIUM-ION ELECTRODES WITH LECLANCHE

Leclanche S.A. and Litarion GmbH, the wholly owned subsidiary of Electrovaya Inc., have entered into a supply agreement for the manufacture and commercialization of lithium ion storage systems incorporating electrodes from Litarion. Leclanche specializes in the production of large-format lithium ion cells and energy storage, and Litarion specializes in the research, development and manufacturing of high-performance NMC-based electrodes. The two companies will build on the extensive experience that Litarion has gained in the manufacturing of electrodes over the last 10 years and the strong cell production know-how and capability that Leclanche has implemented at its German subsidiary located in Willstaett.

This agreement is the result of several months of joint collaboration and sees two of Europe's largest lithium ion production capacities increasing their collaboration.

Pierre Blanc, Leclanche's chief technical and industrial officer, commented: "I am delighted that we have concluded this agreement with Litarion GmbH, whose electrode development and production capability is world-class. Through this agreement, two of Europe's largest lithium-ion-manufacturing capabilities are tightening their relationship to offer the market-leading electrochemical storage systems. The combination of Litarion's capabilities in electrode manufacturing and Leclanche's state-of-the-art cell manufacturing using our proprietary manufacturing and separator technology have resulted in lithium ion cells with outstanding performance. Through this agreement, we further secure this collaboration."

Andre Mecklenburg, Litarion's chief operational officer, commented: "The last six months has been a period of constant change at Litarion GmbH. Shifting from a 100-per-cent supplier to the automotive industry, we are now focusing on the emerging market of energy storage systems and industrial applications.

"We are extremely happy having this supply contract with Leclanche, fitting excellently in our new core field of business. We are confident that the combination of our high-performance electrodes, together with Leclanche's outstanding cell assembly know-how, will lead to joint commercial success."

About Litarion

Litarion manufactures electrodes and ceramic separators for large-format, highly efficient lithium ion battery cells marketed under the brand names Litarion and Separion, using the latest coating and process technologies. Mainly based on NMC cathodes, graphite anodes and Separion (a benchmark in ceramic separator technology), Litarion offers tailor-made solutions for its customers.

Litarion was established in 2008 as a subsidiary of Evonik Industries AG, supplying components for lithium ion cells and batteries mainly for the automotive industry. Litarion in April, 2015, became a 100-per-cent subsidiary of Electrovaya, a public company listed on the Toronto Stock Exchange. Litarion is now focusing on components for energy storage and industrial application battery systems in addition to its existing automotive business.

Litarion has more than 150 employees and an annual production capacity of 500 megawatt hours (anode, cathode and separator). The company has its headquarters and production facilities in Kamenz/Saxony (Germany) and is TS 16949 certified.

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