The sign outside Electrovaya’s 1 Precision Way, Ellicott, factory is pictured. P-J file photo

Electrovaya continues to make progress toward starting the next phase of manufacturing at its Ellicott plant.

The company announced recently that it has begun drawing down its $50.8 million Export-Import Bank funding that is tied to capital and engineering expenses at the 1 Precision Way, Ellicott, plant. Further drawdowns are expected to occur regularly over the next 12 months. The Export-Import Bank funding comes at a fixed interest rate of 4.9% with a 6.5-year term. There are six months of no payment once the initial draw takes place, 12 months of interest-only payments and then 60 months of interest and principal payments.

That funding is being used to pay suppliers as construction and equipment manufacturing milestones are achieved.

Electrovaya, in collaboration with its lead equipment providers, have completed the design reviews of assembly processes and equipment that are customized to the requirements of Electrovaya’s Infinity lithium-ion technology that is expected to begin production in the Ellicott manufacturing plant in the middle of 2026. Electrovaya’s Infinity batteries work by using a proprietary ceramic separator between the anode and cathode to enable high safety and longevity, a key difference from traditional lithium-ion batteries that use liquid electrolytes and polymer separators.

This ceramic separator is stable at high temperatures, which prevents thermal runaway and makes the cells highly resistant to fire. The batteries are based on lithium-ion ceramic technology and use NMC (Nickel Manganese Cobalt) chemistry, achieving long cycle lives and high energy density. The company reported in 2023 that the Infinity batteries completed more than 9,000 charge/discharge cycles using aggressive vehicle duty cycles in cell testing at DNV’s BEST Test Center battery labs in Rochester, N.Y., while retaining 87% of their initial capacity. This extrapolates to about 14,000 projected cycles until cells reach 80% of their initial capacity. The testing has been ongoing on multiple large format 44Ah cells at a variety of charge/discharge rates and temperatures for more than three years.

Electrovaya has collaborated closely with key equipment vendors and third-party consulting firms, and has successfully completed the initial engineering, site, and building planning stages.

“The EXIM-supported funding remains a critical catalyst for advancing Electrovaya’s domestic manufacturing capabilities, enabling the company to serve the rapidly expanding demand for high-durability lithium-ion batteries across material handling, robotics, heavy equipment, and stationary energy-storage markets,” company officials said in a recent news release.

The company has also recently added a senior engineering lead, Marvin Lee, to support efforts expanding manufacturing operations at Ellicott facility as well as supporting overall operations. Lee has more than 25 years of professional experience that includes more than a decade in engineering and development at GM and Renault. Lee also has more than 10 years specializing in the design, development and process engineering of gigawatt scale battery manufacturing at LG Energy Solution. He holds a bachelor’s degree in Materials Engineering and offers extensive expertise and practical knowledge in delivering high-quality engineering solutions.

Electrovaya officials also said the company is hiring additional engineering staff in Jamestown to support manufacturing and equipment setup, including the recent hiring of an automation engineer.

The staff buildup was forecast earlier this year by Dr. Raj DasGupta, Electrovaya CEO, during a conference call with investor analysts.

“On the business side, we’re trying to build up a team in Jamestown who will ultimately be building battery packs, battery modules and battery cells,” DasGupta said in February. “So the sooner that team gets familiar with making battery systems, the better. So we’re taking this as a good opportunity to get that started and in place. The second reason is capacity. We’re seeing growth in demand and it makes sense instead of having another shift in Mississauga, start a first shift in Jamestown. So overall it’s a no brainer. You get out of your comfort zone a little bit. You got to train a new team and add in more equipment, but something we would do anyway.”