Canadian battery maker Electrovaya is to acquire a 500MWh capacity manufacturing plant for the production of lithium-ion batteries and other products.
The plant of the still undisclosed vendor has tangible assets worth of $100m. According to lithium-polymer battery producer Electrovaya, batteries manufactured at the purchased plant will be expanded to broader markets such as aerospace, automotive and energy storage of wind and power.
The Ontario-based company aims to convert the recently constructed facility’s output to battery systems. The battery output is expected to have an annual revenue capacity of up to $550m. Electrovaya will also acquire a management team to manage operations and growth at the plant.
An unnamed client already assigned the acquired plant with a contract worth about $30m per year. Electrovaya said in a statement it believes that similar contracts can be won following the purchase and conversion of the manufacturing facility.
The firm aims to remove toxic NMP at the facility and introduce its non-toxic production process in order to reduce processing costs by 50% and decrease energy costs by 80%.
Electrovaya also received a $1.3m grant this week to deliver multiple energy storage systems (ESS) at various locations with Toronto Hydro and London Hydro. The ESS will provide phase balancing, infrastructure deferment, electric vehicle charging and general energy storage functions.
