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Prices of Electrovaya's stock rose sharply recently after the company announced a commercial agreement with Amazon, Electrovaya's largest customer.
At the close of business Wednesday, Electrovaya’s stock price had increased 28.9% since announcing the agreement with Amazon. Electrovaya officials said the relationship with Amazon is expected to support the continued deployment of Electrovaya's Infinity Battery Technology in material handling operations and potential expanded engagement on robotics and energy storage.
As part of the agreement, Amazon will receive warrants to purchase up to 13,880,345 common shares of Electrovaya, which become fully vested upon Amazon achieving cumulative future purchases of $280 million, with a portion of the warrants vesting immediately upon execution of the agreement, and an exercise price based on the five -day volume weighted average trading price ("VWAP") immediately prior to the date of the agreement.
The vesting of stock warrants is the process by which an investor, executive or advisor earns the right to exercise a contract to buy company shares at a fixed price. Vesting is typically contingent on specific criteria such as passing time, performance milestones, or volume commitments. As Amazon purchases batteries from Electrovaya, it earns warrants that could increase its ownership stake in Electrovaya.
Amazon agrees to continue deploying Electrovaya's Battery Technology in its material handling operations, as well as potentially partnering with Electrovaya as the company potentially expands into robotics and energy storage.
“Electrovaya’s Infinity Battery Technology has demonstrated real performance in demanding material handling environments, and this agreement with Amazon reflects our confidence in the opportunity ahead. We look forward to building on that foundation in other industrial applications where safety and longevity are critical," said Dr. Raj DasGupta, Electrovaya chief executive officer.
Amazon was Electrovaya's largest customer in 2025, according to Electrovaya, when the company reported $63.8 million in revenue that year, up from $44.6 million the prior year. Revenues for 2026 are projected to be more than $80 million while the company works to finish building out its Gigafactory in Ellicott. Electrovaya reported a $3 million increase in second quarter revenue to $18 million in 2026, compared to $15 million in the second quarter of 2025. Revenue for the first half of the 2025-26 company fiscal year clocked in at $33.6 million, an increase of $7.4 million from the first six months of 2024-25. Revenues could have been higher had the company not experienced supply chain delays in the later part of the second quarter that slowed production and shipments, leading to $1.4 million of finished goods that could not be recognized as revenue.
Systems currently under development combine Electrovaya's proprietary Infinity lithium-ion technology with high-power architectures for data center, industrial and logistics applications with enhanced safety, cycle life, and rapid charging capability.
Electrovaya's Infinity lithium ion battery is based on Electrovaya's technology that allows its batteries to withstand multiple charge cycles without any performance degradation, which lends itself well to what he calls material handling applications in which a device is in continuous or heavy use, such as forklifts. While most of Electrovaya's revenues came from producing batteries for forklifts, DasGupta said during the company's first quarter conference call with investor analysts that Electrovaya is starting to deliver batteries for the robotics industry and could begin delivering batteries for energy storage systems that can be used at data centers in 2027. The system is expected to be tested at Electrovaya's manufacturing plant in Ellicott.
“We’re going to use these products ourselves,” DasGupta said. “The Jamestown facility, in terms of improving power reliability, which is important for an industrial site such as ours, we’re going to install our own energy storage systems there instead of using diesel gensets, right? So, we are going at this aggressively in terms of hiring people to support it. … I think it can become quite rapidly a very significant part of our business.”
DasGupta said he eyes the new energy storage products being ready in 2027, which is when cell and module production begins in the Ellicott plant as well. While some manufacturing work has begun at the local plant, full production will begin when current construction work is done in the Ellicott facility.
“We’re getting good feedback, good responses,” DasGupta said. “However the product isn’t quite ready yet, right? So we’re in that development phase and hope to bring it to market pretty much coinciding with the start-up of the start-up of the Jamestown plant.”