Mr. Jason Roy reports

ELECTROVAYA PROVIDES A BUSINESS UPDATE

Electrovaya Inc. has provided a business update.

Canadian manufacturing site upgrades and capacity increase

Electrovaya has made incremental improvements in its manufacturing process, equipment and facilities over the last several months that have led to increased capacity and efficiency. The company believes that the overall manufacturing capacity at its 6688 Kitimat Rd. location in Mississauga, Ont., has nearly doubled year-to-date, with an annual capacity of approximately $130-million (U.S.) of battery systems. Given the capacity improvements, the company continues to operate a single shift to meet its production goals. The company believes that there are further optimizations available, including through additional automation and equipment, and intends to pursue these opportunities. Electrovaya has applied for Canadian government funding to support these potential further investments.

Expansion of engineering capabilities

Electrovaya is growing its engineering capabilities significantly. The company expects that its engineering staffing will increase by approximately 50 per cent in 2023, with most of the targeted additions on-boarded over the past three months. The additional staff brings expertise in many engineering disciplines, including firmware, software, mechanical engineering, industrial engineering and electrical engineering. With the expanded team, Electrovaya expects to have the capability to execute on additional OEM (original equipment manufacturer) projects for both low-voltage and high-voltage applications, and to develop new products -- from battery systems to value-added software. The company is also planning to hire additional staff to support cell manufacturing activities, and recently hired a general manager for its Jamestown, N.Y., facility.

Product and project updates

Electrovaya continues to execute on growing deliveries in the material handling vehicle industry. The company recently made shipments to Australia, received its first orders from Asia and received a new order from its largest Fortune 100 end-user, which already uses the company's batteries at 14 of its facilities and now plans to use them in a 15th. There continues to be strong interest in Electrovaya's newest high-voltage offerings and are targeting the transit, mining, defence and other heavy duty vehicle applications. The company is on target to ship its first preproduction systems this calendar year.

Management share purchases

Electrovaya's management team remains confident in the company's ability to execute on its strategy and continue to build a strong and sustainable growth trajectory. Both Dr. Raj DasGupta, chief executive officer, and John Gibson, chief financial officer, have recently purchased shares on the open market, underscoring their confidence in the company.

About Electrovaya Inc.

Electrovaya 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 intellectual property 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.

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