Electrovaya Inc. (Company of this edition)

Electrovaya Inc. (Company of this edition)
Electrovaya Inc. (Company of this edition)
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The Company of the Month is selected due to recent developments and in connection with the topic ”Batteries”. The Erste AM Responsible Investments team analyses the strenghts and weaknesses of the selected company in terms of ESG.

We selected the Company of the Month on the basis of recent developments in connection with the topic “batteries”. The Erste AM Sustainability Team has analysed the strengths and weaknesses of the company in numerous ESG areas.

We are used to having power 24/7. But this power has to be produced first. The recent development suggests that the pendulum is swinging away from fossil fuels and towards renewable energy. In order for our life to work without friction, we need a safe, economical, and environmentally agreeable form of energy supply for such cases where the sun is not shining or the wind is not blowing. This is where the idea of energy storage, or in simpler terms, the battery enters the stage.

The Canadian company Electrovaya Inc. produces batteries, battery systems, and components for mobile and stationary energy storage on the basis of lithium ions. The company operates production facilities in Canada and Germany.

By taking over Evonik Litarion GmbH from Evonik Industries AG in April 2015, Electrovaya Inc. has expanded its scope of operation further. As part of the transaction, Electrovaya Inc. acquired Europe’s biggest and most highly automated production line for lithium ion electrodes and ceramic separators as well as a multitude of valuable patents and licences.

Among the strengths of the company is the fact that it abstains from using the popular yet technically complex, energy-intense, and toxic solvent NMP (N-methyl-2-pyrrolidone). As a result, more stringent international requirements aimed at regulating toxic substances do not affect the company. Also, Electrovaya uses flexible ceramic separators, in contrast to its competitors. They comply with the currently highest safety standards for lithium ion batteries und cells. Lastly, the combination of the technologies of Electrovaya and Litarion has led to a significant increase in the life span of the company’s lithium ion batteries in comparison with those manufactured by its competitors.

The race for the best solution is in full swing. Battery producers, the manufacturers of electric vehicles of all sorts such as buses, ships, forklift trucks, and utilities building and expanding intelligent power grids are the company’s clients. At the moment, two clients account for the majority of sales; the company is working on expanding its client base. Among its competitors are big players such as LG, Samsung, Panasonic, BYD[1], and Tesla.

[1] Chinese car manufacturer

 

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