Electrovaya (
TSX: EFL,
Stock Forum) added to its potential revenue stream when the company announced today that it had received an order from a leading Chinese battery manufacturer for SEPARION™, a proprietary ceramic embedded composite separator for lithium batteries meant to keep the positive electrode and the negative electrode from contacting each other.
According to the
news release, the company was notified by the Chinese company after it had carried out extensive testing of SEPARION™ for use in its electric vehicle program.
Expected revenue is estimated to be greater than $1.0 million in 2015 with the anticipation of increases in 2016. The company estimates that China alone can absorb over $15.0 million of SEPARION™ in 2016.
The release went on to state that branding and marketing of SEPARION™ has begun including branding, website and a dedicated sales team for SEPARION™. The company has acquired global rights to SEPARION™ and its production facility.
Company Vice President Technology, Dr. Rajshekar Das Gupta, commented, “Because of SEPARION™s unique combination of safety, high temperature performance and amazing increase in cycle life, our objective is to make this separator the industry standard. We are now assessing Joint Ventures and other means to increase capacity to meet increasing demand.”
Mr. Charles Zhang, sales agent for SEPARION™ in China, concluded, “We are seeing a strong response from Chinese battery manufacturers for SEPARION™ and numerous leading companies are asking for samples. Our first major sale in China was driven by the unique properties of the SEPARION™ and the substantial safety improvements seen by our client.”
Electrovaya was in the news recently when
the Mississauga, Ontario-based company announced a conference call concerning its acquisition of Litarion back in the middle of May.
Shares rose 7.59% on the news to $0.85 per share.
Currently there are 80.6m outstanding shares with a market cap of $68.5 million.