The Canadian company develops ceramic separators for lithium ion batteries in home storage and electric vehicles. It is moving from supplying components to supplying battery systems, including a networked battery management system (iBMS), with higher research and development costs. The move to supplying systems has also meant more money in inventory to meet orders for OEM customers.
There were significant non-cash expenses at the German operations of $3.8m, said the company. This includes a provision for inventory revaluation and obsolescence of $1.3m and an allowance for credit losses of $2.5m as part of the transition. The company now has inventory of $18.2m, $8.1m in finished goods and $5.9m in components to meet forward orders in 2017.
”FY2016 has been an important pivotal year and Electrovaya, with its new products, growth in relationships and emphasis on new markets, is well positioned to grow in 2017,” said Dr. Sankar Das Gupta, Chair and CEO of Electrovaya. “FY2016 has been transitional for us, the critical element being our working capital facility which we expect will allow us to expand production and grow sales. Our inventory is at levels where we can execute on planned deliveries,” said CFO Richard Halka.
The company launched an intelligent 48V, 2.3 kWh module (LITASTORE 2.3) with an integrated BMS as building blocks for OEMs as well as signing up several OEMs. The energy density of the cells is increasing from 40Ah to 44Ah, with further increases in the roadmap, and the company has developed a 1kWh module and a 36V forklift battery system was developed.
The FY2016 revenue is $19.5 million (Cdn $26.4m) for the year ended September 30, 2016, a 17.5% increase over the previous year at $16.6 m which saw a loss of $3.2m.