The EFL EFLVF of Electrovaya Inc. recently announced that it has selected New York State as the site for its first US gigafactory, the Gigafactory, for the production of cells and batteries.
Electrovaya will start operations at a 137,000 square foot plant on a 52 acre campus near Jamestown, NY. The Gigafactory is being developed due to rising demand for lithium-ion batteries, which provide superior safety and longevity in demanding applications for e-forklifts, e-trucks, e-buses, and more.
Dr. Raj Das Gupta, CEO of Electrovaya, said that Electrovaya is proud to build its first US gigafactory in New York State to manufacture our high-performance lithium-ion battery products with 100% renewable energy. We are very pleased to have strong support from the State for this venture and expect to find additional non-dilutive funding to support capital needs. The Gigafactory will achieve three key objectives for the Company: Increase manufacturing capacity to meet growing demand, improve supply chain security and overall gross margins through added vertical integration, and develop additional market opportunities, given the significant U.S. based manufacturing capacity, said Dr. Das Gupta.
Empire State Development ESD is assisting the project by providing up to $4 million of tax credits through the performance-based Excelsior Jobs Program and $2.5 million of funding through the Regional Council Capital Fund Program. The Gigafactory will be located in a former electronics manufacturing facility and is expected to create approximately 250 new jobs, with expected production of more than one GWh of battery and energy storage systems over the next five years.
Electrovaya will be eligible for other New York State funds, as well as U.S. federal funding from various agencies and programs. In July, the New York Power Authority Board of Trustees approved an allocation of more than 1.5 megawatts of low-cost hydropower under the Power Authority's Industrial Economic Development program to meet the increased electric load resulting from the Gigafactory. It is estimated that the final capital cost of the facility is estimated to be around $75 million and is expected to open in phases beginning in late 2023.
This post contains sponsored advertising content. This content is intended for informational purposes and is not intended to be investing advice.