Nearly everything you buy has at one time or another been moved by a forklift, most of which are powered by propane. As part of the movement to "go green," more companies are shifting to forklifts powered by rechargeable batteries, a transition that plays right into the hands of companies like Electrovaya Inc.(TSX:EFL)(OTCQX:EFLVF).
As the Toronto-based designer and developer of lithium ion super polymer batteries, systems and related products looks for traction in the space, shares have been under heavy pressure, chopped in half so far in 2017.
Shares are getting a boost on Tuesday morning, though, thanks to Electrovaya completing its first commercial delivery of Li-ion ceramic batteries to replace lead acid batteries used in forklifts at food and beverage giant Mondelez International (NASDAQ:MDLZ).
Electrovaya said that the first delivery was for 36V 960 Ah batteries for forklifts, while noting that its 36V 480 Ah batteries will also replace lead acid batteries in Class 1 vehicles, although no specifics on that front were provided. The new batteries are equipped with Electrovaya's proprietary intelligent Battery Management System and software, as well as rapid charging capabilities that allow the battery to be recharged during work breaks.
The order was worth $804,000 Canadian ($634,000 U.S.) to Electrovaya, a sizable amount for a company that generated $2.0 million U.S. in revenue during the first quarter.
Toronto-listed shares of Electrovaya are up 14.2% from Monday's close to $1.29 about 90 minutes into Tuesday's trading session. Earlier this month, shares hit a 52-week low at 95 cents.
