Electrovaya signs working capital facility agreement

Canadian lithium-ion battery maker Electrovaya Inc (TSE:EFL) yesterday said it had agreed a CAD 13 million (USD 10m/ EUR 9m) credit facility to support working capital needs for its recently announced customer agreements.

The facility was agreed with an unnamed, but " top three" Canadian chartered bank - an institution whose primary business is financial intermediation, or, in other words, bringing together of borrowers and lenders.

"We are very pleased to have this working capital facility as it provides the necessary funds to ramp up our production and meet the demands of our growing customer base, "
said Dr. Sankar Das Gupta, Chairman and CEO of Electrovaya.

Last month, the Ontario-based company announced it had signed a letter of intent (LoI) to supply an estimated up to EUR 199 million of batteries over three years to an unnamed original equipment manufacturer (OEM).

Electrovaya makes Lithium Ion Super Polymer batteries, battery systems, and battery-related products for energy storage and clean transportation. Through its fully owned German subsidiary, Litarion GmbH, it also produces cells, electrodes and ceramic separators. Its production facilities in Canada and Germany have a manufacturing capacity of about 500 MWh per year.

(CAD 1 = USD 0.768 / EUR 0.697)

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