- Electrovaya (TSX:ELVA), a lithium-ion battery technology stock, has signed a supply contract with Sumitomo Corporation Power & Mobility, a subsidiary of Japan’s Sumitomo Corporation, one of the world’s largest diversified trading companies
- The agreement covers the supply of battery modules to leading Japanese original equipment manufacturers in the construction industry
- Electrovaya is dedicated to supplying safe and long-lasting lithium-ion batteries
- Electrovaya stock has given back 13.92 per cent year-over-year, but has added 318.10 per cent since 2019
Electrovaya (TSX:ELVA), a lithium-ion battery technology stock, has signed a supply agreement with Sumitomo Corporation Power & Mobility, a subsidiary of Japan’s Sumitomo Corporation, one of the world’s largest diversified trading companies.
The agreement covers the supply of battery modules to leading Japanese original equipment manufacturers (OEMs) in the construction industry, and opens the door for subsequent contracts. Sumitomo and Electrovaya are introducing battery products to multiple OEMs, predominantly in the Asia-Pacific region. Electrovaya’s product line includes:
- Nickel-manganese-cobalt-based lithium-ion battery cells with industry-leading life cycles and ownership costs
- Its Infinity Battery System suite, composed of low-voltage and high-voltage variants to accommodate everything from material handling equipment to electric buses and defense technology
Electrovaya will benefit from Sumitomo‘s more than one century of experience in global commerce and the strength of its international network, including more than 900 companies across 10 business lines and 66 countries, which generated a combined US$4.2 billion in net income in 2022. Electrovaya, for its part, has managed to grow revenue by more than 10x from US$4.89 million in 2019 to US$44.06 million in 2023, though it has yet to reach sufficient scale to ensure consistent profitability.
Management insights
“We are excited to work with Electrovaya, who has a unique and specific character of lithium-ion battery products. We are ready to work together for our future growth with Electrovaya,” Sumitomo Corporation Power & Mobility stated in a news release.
“We are very pleased with the growing relationship with Sumitomo Corporation Power & Mobility (SCPM) and are excited about the opportunities that we are jointly working towards,” Raj DasGupta, Electrovaya’s chief executive officer, said in a statement. “We believe that our competitive advantages with respect to safety and cycle life continue to provide a key benefit for heavy-duty electrified applications. SCPM is well-connected to major OEMs and customers, and we believe the relationship greatly enhances the company’s sales reach and ability to serve these large-market opportunities.”
About Electrovaya
Electrovaya is dedicated to supplying safe and long-lasting lithium-ion batteries. The company 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 a planned gigafactory.
Electrovaya Inc. (TSX:ELVA) is up by 1.62 per cent, trading at C$4.39 per share as of 9:43 am ET. The stock has given back 13.92 per cent year-over-year, but has added 318.10 per cent since 2019.
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