Electrovaya (ELVA) announced a new commercial agreement and a warrant transaction with Amazon (AMZN) yesterday. Electrovaya is a lithium-ion battery manufacturer that has other Fortune 500 clients like Walmart, Toyota, Home Depot. I did a deep-dive article on them here in March. They have industry leading batteries in life-span and safety.
Text within this block will maintain its original spacing when published
This relationship will support the continued deployment of Infinity Battery Technology in material handling operations and potential expanded engagement on robotics and energy storage.
The robotics and energy storage is great news because these are new verticals for Electrovaya. We know Amazon has a lot of demand with those. In the agreement Amazon will get warrants to purchase up to 13,880,345 common shares of Electrovaya, which become fully vested upon Amazon achieving cumulative future purchases of $280 million. A portion of the warrants will vest immediately upon execution of the agreement. Electrovaya’s industry leading solid-state battery technology along with new verticals into industries like energy storage and defense, are some of the major catalysts I see for growth.
I really like Electrovaya’s current sales mix position. Their sales are centered on industrial material-handling fleets especially electric forklifts operating in warehouses and logistics centers. I see strong future demand from this industry as AI and robotics continues to advance rapidly over coming years and decades.
Text within this block will maintain its original spacing when published
Full Disclosure: I’m long ELVA
No posts
Comments
Nothing yet. Say the first thing.
Sign in to join the conversation.