An anonymous director reports

ELECTROVAYA PROVIDES UPDATE ON PLANNED NEW YORK GIGAFACTORY

Electrovaya Inc. has provided an update on its planned gigafactory in Jamestown, N.Y., and associated financing efforts.

Electrovaya is embarking on the largest manufacturing expansion in its history. In March, 2023, the company purchased a 52-acre site in Jamestown, N.Y., on which it plans to develop a multi-gigawatt hour lithium-ion manufacturing campus. The site will produce Electrovaya's Infinity line of lithium-ion ceramic batteries, including the company's proprietary ceramic separators, cells, modules and battery systems.

The first phase of construction is expected to take place within the existing 135,000 square foot manufacturing facility for the production of cells and batteries, with an estimated capital expenditure of approximately US$48 million. The Company has executed a term sheet and engagement letter for a debt financing facility (the "Facility") from a government-backed lender. Total debt funding, excluding grants and other incentives, which will be led by said lender, will provide more than 80% of the required capital for the first phase. Under the lending terms, Electrovaya hired a third-party engineering firm to review the feasibility of the project. This review was recently completed with a positive outcome. The lending agreement is expected to close in September or October of 2023, pending remaining legal and due diligence steps.

The planned Gigafactory, we believe, provides significant benefits for Electrovaya:

• Domestic manufacturing and supply chain security;
• Inflation Reduction Act incentives of up to US$45 million for every 1GWh of plant output;
• Improved gross margins; and
• Enhanced ability to make more rapid implementation of new battery technologies.

The Company has also been awarded incentives from the State of New York, New York Power Authority, Chautauqua County and other jurisdictions, with more than US$10 million in total incentives awarded.

Electrovaya plans to begin battery system assembly at the Gigafactory in the first quarter of Calendar2024, with cell assembly beginning in the second calendar quarter of 2025. Despite progress with respect to the lending agreements, there is no guarantee that the Facility will close and that Electrovaya will meet the milestones listed above.

About Electrovaya Inc.

Electrovaya Inc. (NASDAQ:ELVA) (TSX:ELVA) is a pioneering leader in the global energy transformation, focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries. The Company has extensive IP and designs, develops and manufactures proprietary lithium-ion batteries and battery systems for energy storage and heavy duty electric vehicles based on its Infinity Battery Technology Platform. This technology offers enhanced safety and industry leading battery longevity. The Company is also developing next generation solid state battery technology at its Labs division. Headquartered in Ontario, Canada, Electrovaya has two operating sites in Canada and has acquired a 52-acre site with a 135,000 square foot manufacturing facility in New York state for its planned gigafactory. To learn more about Electrovaya, please explore www.electrovaya.com.

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