Amazon Gets Options to Buy Stake in Canadian Battery Company
Amazon receives options to purchase over 20% of Electrovaya's shares, contingent on increased product purchases from the Canadian battery maker.
Key Numbers
Canadian battery company Electrovaya announced it has granted Amazon options to buy over 20% of its shares, but the options will only vest as Amazon purchases more products from Electrovaya.
Details
According to a statement from Electrovaya, the options give Amazon the right to purchase shares representing more than 20% of the company's capital, subject to performance conditions related to the volume of future purchases by Amazon. The total value of the deal and other financial details were not disclosed.
Context
The move is part of Amazon's efforts to secure battery supply chains for its products such as tablets, wireless earbuds, and IoT devices. Electrovaya specializes in solid-state and safe lithium-ion batteries.
What This Means for Investors
The deal gives Amazon a strategic option without an immediate commitment, providing flexibility in securing supplies. For Electrovaya, it is an opportunity to boost sales and attract future investments. However, investors should monitor how much Amazon increases purchases to trigger the options.
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