Electrovaya Inc. saw its stock surge 50% on Wednesday after disclosing a commercial agreement and a related warrant transaction with Amazon. The Toronto- and Nasdaq-listed lithium-ion battery technology and manufacturing company said the arrangement is designed to facilitate further use of its Infinity Battery Technology in material handling operations and could expand into robotics and energy storage engagements.
Under the terms announced, Amazon will receive warrants allowing it to acquire up to 13,880,345 common shares of Electrovaya. The warrants include a vesting structure tied to future purchasing activity: they become fully vested once Amazon reaches cumulative purchases of $280 million. A portion of the warrants vests immediately upon execution of the agreement. Electrovaya said the exercise price for the warrants is based on the five-day volume-weighted average trading price immediately prior to the date of the agreement.
Electrovaya characterized its energy storage systems as being built on its proprietary Infinity Technology. The company described Infinity as having a field safety record and said it offers a reduced environmental footprint and a lower total cost of ownership relative to conventional lithium-ion technologies.
"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," said Raj DasGupta, Electrovaya’s Chief Executive Officer. "We look forward to building on that foundation in other industrial applications where safety and longevity are critical."
Electrovaya also noted that systems it is developing pair its Infinity lithium-ion chemistry with high-power architectures aimed at data center, industrial and logistics applications. The company highlighted attributes such as enhanced safety, extended cycle life, and rapid charging capability as features of these systems under development.
The announcement links a large e-commerce and logistics customer to a structured purchase and equity-warrant framework, and the company positioned the deal as supporting additional deployments of its battery technology across material handling and potentially broader industrial uses.
Summary: Electrovaya announced a commercial and warrant agreement with Amazon that granted warrants for up to 13,880,345 shares, vesting on a $280 million cumulative purchase threshold and with exercise price tied to the five-day VWAP prior to the agreement. The company emphasized Infinity Technology’s safety, lower environmental footprint, and lower total cost of ownership, and highlighted systems in development for high-power industrial applications.