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‘We Are Pretty Confident’

Electrovaya CEO: Progress Made On Ellicott Factory Financing

In a screenshot from the company’s website, Dr. Raj DasGupta, Electrovaya CEO, discusses the company’s planned Ellicott Gigafactory during a 2023 TD Ameritrade Network interview.

Electrovaya is making progress on project financing to build its new factory in Ellicott.

Dr. Raj DasGupta, Electrovaya CEO, discussed progress on the company’s Gigafactory during a conference call with investor analysts recently. DasGupta said Electrovaya has completed engineering studies and anticipated manufacturing equipment for the manufacturing site in the former Acu-Rite building while also updating environmental studies. As was reported by The Post-Journal previously, Electrovaya has hired Lee Gilmore as the general manager of the Ellicott facility and DasGupta said Electrovaya continues to identify other key staff.

“We are pretty confident,” DasGupta said. “We have good visibility because of our frequent conversations with these parties. Some things have given us better clarity over the last few weeks, especially with regards to some of the environmental reviews that were being taken for the site, and those appear to be going faster with a clear end. If it moves into April, that’s also OK. We’ll still be able to have our operation up and running on schedule.”

John Gibson, Electrovaya CFO, said first-quarter revenue was $12.1 million, a 41% increase from the company’s $8.6 million in the first quarter of 2023. EBITDA, or earnings before interest, taxes, depreciation, and amortization grew $800,000 from the first quarter of 2023 to the first quarter of 2024 to $600,000. EBITDA attempts to represent the cash profit generated by the company’s operations.

The first quarter still resulted in a $100,000 operating loss, according to Gibson, after accounting for some one-off costs in the first quarter, though Gibson said he expects that to turn into a profit as the year progresses. Despite the operating loss, the company’s financial picture is much-improved from the same time two years ago. Electrovaya reported an overall net loss of $200,000 in the first quarter of 2024 compared to a $2.4 million loss in the first quarter of 2022.

Company officials are projecting between $65 and $75 million in revenues for the 2024 fiscal year. That guidance is independent of the planned opening of the Gigafactory in Chautauqua County. Electrovaya’s Infinity-HV systems target heavy-duty, high-voltage applications including buses, delivery trucks, construction trucks, hybrid-fuel cell/battery systems and stationary energy storage systems. The first shipment was made to a global aerospace company for a new vehicle type, according to a late December news release, while company officials also anticipate shipping additional pre-production systems early in the new year for electrified airport diesel generator replacement devices. Electrovaya continues to experience strong interest in the electric bus market and other applications and is working towards securing long-term contracts.

Mass production of the Infinity-HV products is planned at the Gigafactory once it opens. According to Electrovaya’s corporate presentations, module and pack assembly in the Ellicott factory could begin this fall with cell assembly possible starting in the spring of 2025. Those timelines are important for Electrovaya to expand as planned, according to DasGupta.

“No, our fiscal year guidance is independent of Jamestown completely,” DasGupta said. “So, as I mentioned previously, the Canadian operations, which are focused on material handling applications, they can sustain revenue of about $130 million per annum, so roughly double our guidance. And the guidance is all based on material handling. Where Jamestown is going to be important is to support our High-Voltage Battery Systems and of course cell and module production that becomes IRA-eligible.”

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