Ontario's lithium ion battery specialist Electrovaya is finalizing the acquisition of a best-in-class manufacturing facility that the company hopes will transform its ability to produce lithium ion batteries at a rate capable of meeting soaring demand.
Electrovaya has announced it is to purchase a factory from an as-yet-unnamed vendor and turn the facility into a state-of-the-art battery production unit.
The company hopes that the factory, once converted for battery systems, will be capable of producing 500 MWh of lithium ion electrodes and other products annually, generating revenues of between $250-$550 million a year.
The recently built factory has tangible assets of more than $100 million, and is backed by a strong operating company, says Electrovaya. In place already is a profitable ongoing contract to a key client that is worth in the region of $30 million per year, and the company believes that similar contracts can be won following the purchase and conversion of the manufacturing facility in question.
Batteries and electrodes produced at the new plant will be expanded to broader markets, including utilities, the solar and wind industries, microgrids, and the marine and automotive industries.
Electrovaya's green, non-toxic production process specializes in manufacturing batteries without the need for NMP (n-methyl-pyrrolidine), which is a highly toxic material used in the production of conventional lithium ion batteries.
The company estimates that by utilizing its unique non-toxic manufacturing technology it can become the lowest-cost and greenest producer of battery products on the planet. Early projections suggest that energy costs for the plant will be reduced by 80% once Electrovaya has fully converted it for battery production.
Electrovaya's involvement in the solar industry is growing. Earlier this year the company entered into a partnership with fellow Ontarians Canadian Solar to supply 200 kWh of storage solutions to a project funded by the provinces Smart Grid Fund. At the time, Electrovaya's VP of business development, Raj Das Gupta, said that the project was "a start for more collaboration in this growing field of microgrids".