Electrovaya Provides Update On Planned New York Gigafactory; Over 80% Of The First-Phase Facility Costs Expected To Be Covered By Government-Backed Debt

The planned Gigafactory, we believe, provides significant benefits for Electrovaya:

• Domestic manufacturing and supply chain security;
• Inflation Reduction Act incentives of up to US$45 million for every 1GWh of plant output;
• Improved gross margins; and
• Enhanced ability to make more rapid implementation of new battery technologies.

The Company has also been awarded incentives from the State of New York, New York Power Authority, Chautauqua County and other jurisdictions, with more than US$10 million in total incentives awarded.

Electrovaya plans to begin battery system assembly at the Gigafactory in the first quarter of Calendar2024, with cell assembly beginning in the second calendar quarter of 2025.