Mr. Jason Roy reports

ELECTROVAYA PROVIDES A SHAREHOLDER UPDATE INCLUDING UNAUDITED PRELIMINARY FY2024 ANNUAL FINANCIAL RESULTS AND POSITIVE OUTLOOK FOR 2025

Electrovaya Inc. has released an unaudited fiscal year (FY) 2024 ending Sept. 30, revenue update along with other business updates. All figures in this update are expressed in United States dollars.

FY financial 2024 update:

• Preliminary unaudited FY 2024 revenue is estimated at $44.6-million (U.S.);
• Margins for FY2024 is estimated at approximately 31 per cent;
• Expected operating profit and improved adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for FY2024.

FY financial 2025 preview:

• The company anticipates strong growth into FY2025 with estimated revenues to exceed $60-million driven by renewed demand from the company's largest end users of material handling batteries.
• This guidance was prepared by taking into account the company's existing purchase orders, along with anticipated pipeline from its key end users and OEM (original equipment manufacturer) customers. This guidance also takes into consideration a percentage of anticipated revenue that potentially may be deferred to FY 2026.

EXIM direct loan update:

• The Export-Import Bank of the United States (EXIM) on Nov. 14, 2024, approved a direct loan of $50.8-million to Electrovaya to support its lithium-ion battery manufacturing expansion in Jamestown, N.Y.
• Electrovaya is currently in the process of finalizing documentation with an anticipated funding date in CY Q1 2025.
• The EXIM facility is expected to have a term of six years with an expected interest rate of 4.25 per cent, subject to any changes in the federal interest rate prior to closing and annual fees of less than 2 per cent.
• The EXIM facility will cover all equipment, engineering and construction costs for the Jamestown battery manufacturing site.

Other Jamestown, N.Y., expansion updates:

• Electrovaya is in the process of updating disbursement schedules from Empire State Development (ESD) to reflect the anticipated Jamestown battery manufacturing project start. ESD has provided commitments of $6.5-million of incentives including $2.0-million in grants and $4.5-million in refundable tax credits.
• Jamestown battery operations are expected to commence in the first half of CY 2026, coinciding with several ongoing OEM production programs reaching maturity which is expected to further bolster demand and revenue.

Verticals and market interest for mission critical applications:

• Electrovaya's core market for material handling electric vehicles and robots is witnessing increasing demand from the company's current largest end-users. Furthermore, a new leasing promotion in partnership with an OEM partner appears to be generating new sales opportunities.
• Electrovaya continues to make strides in growing interest from the defense industry. Recently, a global aerospace and defence company issued follow on orders for high voltage battery systems following intensive testing.
• The company is expecting to ship its first battery modules to a global Japanese headquartered construction equipment OEM in CY Q1 2025. These initial shipments will be exported to Japan.
• The company has begun development of battery systems specifically targeting the data centre energy storage/backup power market. Due to inherent advantages in safety and longevity, Electrovaya believes that the company can retain premium pricing in this fast-growing energy storage segment.
• Solid state battery research: Progress continues in developing lithium ion conducting ceramics along with a composite separator. Pouch cell testing is continuing.

Electrovaya expects to release its full audited financial statements for fiscal 2024 in the second half of December, 2024, and each of these items will be described in further detail.

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 without compromising energy and power. The company has extensive IP (intellectual property) and designs, develops and manufactures proprietary lithium-ion batteries, battery systems and battery-related products for energy storage, clean electric transportation and other specialized applications.

Electrovaya has two operating sites in Canada and a 52-acre site with a 135,000-square-foot manufacturing facility in Jamestown, N.Y., for its planned gigafactory.

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