Mr. Jason Roy reports

ELECTROVAYA ENTERS INTO A STRATEGIC SUPPLY AGREEMENT WITH JANUS ELECTRIC WITH APPROXIMATELY $26 MILLION IN INITIAL ORDERS

Electrovaya Inc. has entered into a strategic supply agreement with Janus Electric Holdings Ltd., an Australian developer of diesel-to-electric conversion and battery-swapping systems for Class 8 heavy-duty trucks, with approximately $26-million in initial purchase orders for Electrovaya's lithium-ion battery systems to meet initial demand for Janus products in the United States and Canada. As part of the strategic alignment, Electrovaya has entered into a term sheet to invest approximately $1.4-million (U.S.) in Janus for up to 4.2 million shares, together with up to 6.3 million warrants.

Class 8 trucks, the heaviest category of on-road commercial vehicles, are among the largest consumers of diesel fuel, making their electrification one of the most significant, and most demanding, applications for battery technology. Janus's approach converts existing diesel prime movers to battery-electric operation and pairs them with swappable battery packs and Janus Charge & Change stations, allowing fleets to exchange batteries in minutes rather than wait hours to recharge, and to electrify without the capital cost of purchasing new trucks. Electrovaya's lithium-ion battery systems, which incorporate its proprietary infinity battery technology and are designed for safety, reliability and long cycle life in high-utilization applications, are well suited to the repeated daily swap cycles of this model.

Janus has built a significant order book across the United States, Canada and Australia. To date, Janus has secured orders and commitments for 118 truck conversions in the United States and Canada. In Australia, Janus continues to serve existing customers and is advancing a pipeline of opportunities across the mining, line haul and quarry sectors. Approximately 600 kWh (kilowatt-hours) of Electrovaya batteries are utilized per truck conversion.

With deliveries to Janus now under way, Electrovaya is supplying battery systems to support the start of Janus's North American customer deployments. Electrovaya is also expanding its North American manufacturing capacity, including lithium-ion cell, module and battery pack production at its facility in Jamestown, N.Y., which is expected to come on-line during the company's 2027 fiscal year.

"Electrovaya is an important partner to Janus Electric, and we're particularly pleased it has decided to invest directly in our business. The investment is a strong vote of confidence in our technology and approach to electrifying heavy transport," said Ben Hutt, managing director and chief executive officer of Janus Electric. "Reliable battery supply is critical to our growth, and Electrovaya's expanding North American manufacturing capabilities will be important as we scale. Both companies see considerable opportunity in this market, and we look forward to building on our partnership."

"Class 8 trucking is one of the most exciting and demanding frontiers in electrification, and Janus has demonstrated real commercial traction with fleets in the United States, Canada and Australia," said Dr. Raj Das Gupta, chief executive officer of Electrovaya. "Janus has developed a practical solution to one of the major challenges facing heavy transport, enabling diesel-powered trucks to be converted to electric without compromising their commercial operations. With deliveries now under way, we are pleased to support Janus as it moves from orders to deployments. Our strategic investment, together with the warrants, aligns us closely with Janus's long-term growth."

In conjunction with the supply agreement, Electrovaya has entered into a term sheet to make a strategic equity investment of approximately $2.0-million (Australian) ($1.4-million (U.S.)) in Janus by way of a direct placement. The placement shares will be issued at the five-day volume-weighted average price of Janus shares on the Australian Securities Exchange (ASX) prior to signing, totalling approximately 4.2 million shares. At completion, Janus will also issue to Electrovaya, for no additional consideration, warrants equal to 150 per cent of the number of placement shares issued. Each warrant will be fully vested on issuance, will entitle Electrovaya to acquire one ordinary share of Janus at an exercise price equal to 125 per cent of the placement issue price and will expire three years from the date of issuance. Completion of the placement is subject to customary conditions, including ASX quotation of the placement shares and receipt of any required approvals. Janus intends to use the proceeds for working capital purposes.

About Electrovaya Inc.

Electrovaya is a pioneering leader in the global energy transformation, focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries without compromising energy and power. The company has extensive IP and designs, develops, and manufactures proprietary lithium-ion batteries, battery systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications. Electrovaya has two operating sites in Canada and a 52-acre site with a 135,000-square-foot manufacturing facility in Jamestown, N.Y., for its planned gigafactory.

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