Electrovaya’s Targets In Its Own Battery Gigafactory

DEC 15 2014 BY MARK KANE 21

Electrovaya projects

Electrovaya projects

electrovayaElectrovaya announced plans of a transformational acquisition of a state-of-the-art manufacturing plant with capacity of about 0.5 Gigawatt hours (GWh) of lithium ion electrodes and other products.

For now, we don’t know who is selling this facility or where it exists, but Electrovaya wants to acquire it “at a fraction of the tangible asset value“.

“The plant’s output, when converted into battery systems, has a revenue capacity of up to $250-$550 million.  This is a transformational project for Electrovaya as it instantly brings best-in-class manufacturing capacity to meet soaring demand for the Company’s energy storage products.”

The highlights of the acquisition are:

  • State-of-the-art modular facility built recently with hundreds of millions of dollars invested; tangible assets of over $100 million and a  strong operating company
  • A profitable ongoing contract to key customer with annual revenue of ~$30 million
  • Revenue capacity of up to $250 million to $550 million for battery systems with 0.5 Gigawatt hour (GWh) nominal energy storage capacity
  • Electrovaya’s green non-toxic production process will remove the toxic NMP in the plant and allow up to 50% reduction in processing costs, about 80% reduction in energy costs while producing higher performing products, making the plant very competitive globally
  • Acquiring experienced management team to manage operations and growth
  • Total purchase price is a small fraction of the tangible asset value. Financing is planned through debt and grants

If Electrovaya acquires the plant,  the firm will expand to broader markets including utilities, energy storage of wind and solar, aerospace, micro-grids, marine and automotive industries while maintaining supply to its present customer

“Conventional lithium ion manufacturing plants use large quantities of toxic NMP (n-methyl-pyrrolidone), now suspected of causing birth defects and increasing operating costs, capital costs and future liabilities. Electrovaya’s unique non-toxic manufacturing technology will enable this plant to become the lowest cost producer as well as the greenest large manufacturer on the planet.  It is estimated that the processing costs of the plant will be reduced by over 50% and its energy costs by over 80%.”

Now, let the speculation begin. Tell us who is selling the plant and who will buy 0.5 GWh of batteries (enough for more than 20,000 Nissan LEAFs).

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21 Comments on "Electrovaya’s Targets In Its Own Battery Gigafactory"

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Next year will come with some Capex tragedies. In this case, I hope power sector demand can make up for the consumer’s delight, at low gas prices. We’re at one of those moments where lots of plans will get re-priced.

Half a GW is not a Gigafactory.

Model S sold in CA in one year use more batteries than that.

No, it’s half a Gigafactory, which would still likely be more capacity than Tesla could claim at the moment. And is still a substantial factory.

Substantial, yes, but not even close to half a Gigafactory. More like ~1%.

Yeah, if Mark chose that title, then he’s misusing the term. Tesla’s gigafactory has 70-100x the output.

Tesla is using that term because they’re going to make 1-2 billion cells per year. Currently the Panasonic cells are ~12Wh, but their gigafactory cells will be a bit bigger.

Misusing the term? The only misuse would be that 0,5 GW is not 1 GW or more.
Why Tesla calls their factory a gigafactory is irrelevant, the prefix “giga-” is possible to put in front of everything that can be measured in billions.

Most relevant use of the term though for a battery factory would be to describe the energy storage produced or in other words how many GWh a yearly production could hold.

‘Giga’ is not a scientific term if you put it in front of factory. Tesla was the overwhelming force in popularizing the term, and they defined it as producing >1 billion cells per year.

Standard metric units for energy is Joules, not Wh, so you could measure battery capacity in GJ also. However, producing 1GJ/yr does not make you a gigafactory. That’s less than one kWh per day.

Actually giga refers here probably more like something that is very large or gigantic. And today giga is very popular prefix in common language, because we often think gigaelectron volts in our everyday lives.

Is anyone actually even using these electrovaya cells?

There are speculations that Daimler will reorganize its battery supply chain. First step was getting rid of tesla. Second selling their cell production facility. Third sourcing form the cheaper external supplier…. lets see what happens. Btw: the Li-tec plant in Kamenz (Germany) is for sale. has the reported capacity and received multi million investments over the last years. LG offered a negative purchase price and there are grant schemes available… could fit.

I was thinking the exact same thing.

Alternatively it could be EuropeanBatteries in Finland. Is put on sales for over a year and one can get a pretty good price/discount on buying and putting in production the facilty at the current place.

Interestingly there is the demand for the smart fortwo 3 EV in 2016 that requires cells from 2016 on. If you think about 30K vehicles you will arrive with your calculus at about 0,49GWh. 30K is daimlers target. They are also looking into higher energy density and lower cell prices… EFL states a up to 50% cost reduction though their production technology – incentives for battery tech are huge in Germany right now…so many coincidences. Especially because EFL stated that they will receive a starting contract of 30mm (test fleet?). And from some old news (which I cannot find right now) it is proven that Das Gupta has been on trade shows in Germany in 2013/14…

(-> seeking alpha article)

I’m only giving alternative option.
However, the one with LiTec seems more justified (and actually I’m checking it internally). I keep my fingers crossed as I used to work there 😀

Q, I did not mean it in an offensive way. But personally I think it is more likely that some automotive and storage customers trying to trigger a shift in cell supply. As far as I know, there is no meaningful battery plant located in Germany. Correct me if I am wrong. Nissan is located within the UK, US and Asia. German OEMs are quite dependent on external suppliers, especially as Bosch and SDI separated their paths as well…. looking fwd to your reply…

In Germany you have two more battery companies with some tides to automotive market: Leclanche in Willstätt and Varta Microbatteries in Ellwangen (doing some R&D with VW).
Bosch was supposed to build their own pilot plant for Li-ion cells in 2012+, located in Eisenach, but instead flipped to cooperation with Yuasa.


More news from Germany


Another proof of them planning to overtake Li-Tec/Evonik:


States: “acquisition in Europe” (…) “largest European producer of lithium ion battery electrodes and separators”.
Sounds like more to grab Evonik’s slice rather than the neighboring Li-Tec plant.


No news from Germany is there really chance that EFL close deal with Li-Tec, still risk they are not able to raise fund (debt).

Seems like Electrovaya’s money train didn’t arrive. I’ve just been passing by Evonik/Litec site and they are not relabeled.

Thanks for info.

Is there any cars on parking lot ?

On google maps it is full empty …