Mentioned:
Amazon is buying batteries from a publicly traded company. But, why?
What’s happening:
- Electrovaya (NASDAQ: ELVA) has entered into a new commercial agreement with Amazon (NASDAQ: AMZN) to supply them their Infinity Battery Technology for Amazon to use in their material handling operations
Why it matters:
- Electrovaya’s Infinity Battery Technology is a proprietary lithium-ion battery platform that is capable of powering material handling equipment including forklifts and pallet jacks
Going deeper:
- Electrovaya has publicly stated that they intend to expand their Infinity Battery Technology into being deployed in both robotics and energy storage systems
- Amazon also received roughly 13.8M warrants with a strike price of $8.56 USD per share in Electrovaya as part of the new deal which will fully vest if Amazon purchases $280M USD of Infinity Battery Technology from Electrovaya
Market reaction:
- Shares of Electrovaya surged more than +30% following the new commercial agreement with Amazon
