Dr. Raj DasGupta reports

ELECTROVAYA CLOSES $50.8 MILLION DIRECT LOAN WITH EXPORT-IMPORT BANK OF THE UNITED STATES ("EXIM") TO EXPAND U.S. BATTERY MANUFACTURING

Electrovaya Inc. has closed a direct loan in the amount of $50.8-million (U.S.) from the Export-Import Bank of the United States (EXIM) under the bank's Make More in America initiative. The company has also met substantially all of EXIM's condition precedents required to begin drawdowns on the loan.

This financing will finance Electrovaya's battery manufacturing buildout in Jamestown, N.Y., including equipment, engineering and set-up costs for the facility. Electrovaya has rapidly increasing demand for its products from a wide range of heavy-duty and mission-critical electrified applications, and it has been a priority of the company to expand its manufacturing operations in the United States for these vital products. The company's manufacturing facility in Jamestown is scheduled to produce Electrovaya's proprietary Infinity lithium-ion ceramic cells, which offer industry-leading longevity and safety.

The battery manufacturing facility in Jamestown is expected to lead to over 250 jobs and support Electrovaya's exports to Japan, Canada and Australia. Furthermore, the facility will both benefit from and help support developing supply chains in the United States for lithium-ion battery production.

Key features of the agreement

Loan amount:  $50.8-million (U.S.)

Term:  six years following drawdown period, including one year of interest-only payments followed by five years of interest and principal payments

Effective interest rate: annualized.  to be finalized prior to the first disbursement but expected to be between 6 per cent and 7 per cent

Use of proceeds:  $46.4-million (U.S.) for lithium-ion cell, module and battery pack manufacturing and $5.3-million (U.S.) for construction and engineering

Other key terms:   intercreditor agreement with Bank of Montreal (BMO), which is providing a $20-million (U.S.) facility to support working capital requirements

"The funding from EXIM is a game changer and instrumental for our capacity expansion strategy of lithium-ion cell production in the United States," said Dr. Raj DasGupta, chief executive officer of Electrovaya. "Our facility in Jamestown is powered by low-cost renewable hydroelectricity and will produce the longest-lasting and safest lithium-ion cells in the world when it starts commercial shipments in 2026. We expect this expansion to support our plans for exponential growth and lead to improvements in our margins through vertical integration. We are also well under way with the start of battery system assembly in Jamestown, which is anticipated to start in Q2 [calendar year] 2025."

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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