Electrovaya Launches New Li-Ion Batteries Responding to Safety Enhancements in Aerospace

Electrovaya, Inc. has launched its new generation of lithium ion battery technology SuperPolymer®2.0. The Lithium-Ion SuperPolymer® 2.0 battery technology is a new generation of lithium ion (Li-ion) batteries. It represents the integration of the company’s automotive and grid knowledge, with customers’ feedback, recent safety enhancements in the aerospace sector and a overall vision of the future design of advanced batteries. This technology meets the demands of a wide range of applications including electric vehicles, marine, telecom, grid, residential storage and more. The Company has focused on enhancing its technology by adding more safety features on all levels of the battery system.

Key improvements in the battery system include: Safety improvements: fire resistance, reduced flammability, anti-propagation; Wider operating temperature range at both hot and cold extremes; More efficient thermal management system in a smaller space; And other improvements along key performance metrics.

The module-level and system-level improvements are a result of intensive development at Electrovaya as well as the addition of intellectual property acquired from Tata Motors through the August 2012 acquisition of Miljobil. During this technology transition period, there was a reduced output resulting in lower revenues and deferred sales in the last few quarters.

We expect our Q2 FY 2013 revenue to be approximately $350,000-$400,000. With the present launch of the SuperPolymer® 2.0 battery system, Q3 FY 2013 revenues are expected to ramp up. Electrovaya has a large and growing sales pipeline in the electric vehicle, energy storage, marine, transportation, and mobile oower markets.

The Super Polymer® 2.0 will be produced using Electrovaya’s green manufacturing process, which avoids using a toxic chemical called N-Methyl Pyrrolidone (NMP), unlike most Li-ion battery manufacturers. NMP is known to have a negative effect on human health and many countries have set occupational exposure limits. Electrovaya enjoys certain benefits from this production process as it believes it has operational cost savings of up to 50% compared to others and in addition, users of the Li-ion battery systems can gain a social benefit from the use of eco-friendly battery systems.