Li-ion battery fav Electrovaya,
$elva $3.80 made 2 new announcements in the past week. A large Internet retailer placed another nice order for DC material handling equipment battery retrofits.
This is a big deal as nearly all of 2024 sales to customers were new forklifts going into new DCs.
The forklift installed base of lead acid batteries that can be replaced by Li-ion is many times the annual OE forklift market.
The company also announced a set of battery designs specifically for robotic end markets today, along with 3 OEM partnerships.
This market is modest today, but hold significant promise in the intermediate future. It's not a 2026 sales driver, but another vertical market in
$elva TAM. These emerging markets can help them drive sales to $300 million in 5ish years, from my expected nearly $100mm in fy 2026.
My $300mm target assumes both new Jamestown factory and Canadian facility at normal utilization in fy 2031, or 25% sales cagr for 5 years.
This is one of my highest risk and highest reward names, requiring strong execution by management/company. As always, sharing my positions does not represent investment advice. And always perform own Due Diligence as well.