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Sep 19, 2023

Electrovaya plans $75 million lithium

A Canadian maker of lithium-ion batteries plans to open a $75 million

A Canadian maker of lithium-ion batteries plans to open a $75 million manufacturing plant in southern Chautauqua County that promises to employ 250 when fully staffed.

Electrovaya, a publicly traded company based in Mississauga, Ont., said it had chosen a former manufacturing plant near Jamestown for the project. The facility will make cells and batteries for transportation and utility storage, and is expected to open in fall 2023.

"We wanted to find an area of the state that was local to us and that we could grow with," said John Gibson, the chief financial officer. "Jamestown's a small town, but there's a lot of small Canadian towns that just need that small push in order to get them going."

Electrovaya's project will give the company its first U.S.-based plant, while reviving a dormant manufacturing facility in the Town of Ellicott. Heidenhain closed an electronics and optics factory at the site in 2018, eliminating about 40 jobs.

Gibson said the facility, which contains clean rooms, perfectly suits Electrovaya's needs.

"It requires very little in terms of upgrading to get ready for us to move in," he said. "Essentially all we’re doing is purchasing equipment, having it commissioned and installed, and we’re off to the races."

The facility has ample space to expand production as the market grows, and additional land if the company needs to add square footage, Gibson said. Plus, the facility is not far from Raymond Corp., a forklift maker and strategic partner based in Central New York.

Electrovaya plans to hire for a variety of jobs, including production workers, engineers and managers.

"I think what we want to do is kind of put Jamestown on the map as a kind of hub for not only lithium ion batteries, but renewable energy," Gibson said. "We’re going to do our absolute best to promote the town and the surrounding area. There's going to be a lot of jobs opening up there."

The United States is about 90% of the total market for Electrovaya's products, he said. Opening a U.S. facility will allow the company to compete for sales that may have "buy-American" requirements attached to them, such as electric buses and trucks.

"This really opens the door for that side of the business," Gibson said.

State officials hailed the project as an investment supporting New York State's goals to promote "clean tech" development. Empire State Development will provide up to $4 million Excelsior Jobs Tax credit program, which is tied to job creation at the plant. And the project will receive $2.5 million in Regional Council capital funding. It also has been granted low-cost hydropower from the New York Power Authority.

Electrovaya expects it will be eligible for other state funds, as well as federal funding from various sources.

In its most recent quarterly report, the company projected sales for its 2022 fiscal year, which wrapped up at the end of September, would be $21 million in U.S. dollars. Electrovaya projects that figure will rise to $44 million in its current, 2023 fiscal year.

The Chautauqua County plant will mark a significant step for a company that has been around since 1996, Gibson said.

"There's been a lot of battery companies that have come and gone, but we’ve managed to stay around, stay relevant, and we’ve got no intentions on slowing down anytime soon," he said. "This isn't, let's roll the dice and come in and see what we can do over the next couple of years. This is, we’re coming here and putting our footprint in Jamestown."

Matt Glynn

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