Shares of Electrovaya Inc., a Canadian lithium-ion battery manufacturer, surged following a new commercial agreement with Amazon.com Inc., which could result in the U.S. technology company owning more than 20 percent of Electrovaya’s outstanding stock.
The Mississauga-based company disclosed on Wednesday that it had entered into a deal granting Amazon warrants to purchase up to 13,880,345 common shares at a fixed price of $8.56 each, valid for 10 years. Upon closing Tuesday, Amazon exercised 40 percent of these warrants, with remaining warrants set to vest gradually as Amazon purchases $280 million worth of Electrovaya products. Amazon currently represents approximately one-third of Electrovaya’s fiscal 2025 revenue, which totaled $63.8 million.
Electrovaya’s stock closed at $11.76 on the Nasdaq Tuesday, increasing by 49 percent, and trading above the warrant exercise price. If Amazon were to exercise all warrants immediately, it would hold roughly 20.6 percent of Electrovaya’s fully diluted shares, based on the company’s 53.5 million shares outstanding as of March 31. However, Amazon is not obligated to exercise all warrants, and the process of acquiring the full stake is expected to take several years.
Electrovaya specializes in lithium-ion batteries mainly used in electrified forklifts and material handling vehicles within warehouse operations. Its customer base also includes Walmart, Jabil, Target, and Toyota. The company is now focusing on longer-term growth areas such as ultrafast charging batteries, energy storage solutions for data centers, and robotics applications, with plans to introduce new products to the market in 2027. CEO Raj DasGupta indicated that energy storage offerings for data centers could become Electrovaya’s leading revenue segment by 2028.
The current agreement with Amazon involves deploying Electrovaya’s existing battery technology in material handling operations, with potential expansion to robotics and energy storage. DasGupta described Amazon as a strategic partner and investor whose activities align closely with Electrovaya’s technology roadmap. When asked about the possibility of Amazon acquiring Electrovaya, the CEO acknowledged it as a potential scenario but emphasized that the company is currently focused on growing its battery production and expanding manufacturing capacity rather than pursuing a sale.
Founded nearly three decades ago by battery pioneers Sankar DasGupta—father of the current CEO—and Jim Jacobs, Electrovaya employs proprietary ceramic separator technology designed to prevent battery fires caused by overheating, setting its products apart from competitors using polymer separators. The company’s batteries also offer enhanced energy density, longer life spans, and faster charging capabilities.
Since going public on the Toronto Stock Exchange in 2000 and listing on Nasdaq in 2023, Electrovaya has experienced periods of growth and setbacks. Early partnerships included contracts with General Motors, NASA, and Microsoft, but a government-backed venture with Chrysler ended after safety issues with experimental EV batteries. The company expanded into Europe by acquiring a large lithium-ion plant in Germany and securing contracts for residential energy storage but suffered financial setbacks as the vehicle supplied by the German plant underperformed commercially.
Following the European retreat and facility insolvency in 2018, Electrovaya refocused on providing batteries for warehouse vehicles, initially outsourcing production overseas before relocating manufacturing to North America to better serve the U.S. market. This shift contributed to a 43 percent revenue increase in 2024, with forecasts projecting revenue to exceed $83 million in 2025, a year in which the company’s stock has more than tripled since the end of 2024.