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Decades-old Canadian battery maker Electrovaya has secured a commercial agreement and warrant transaction with Amazon, the companies tell Axios Pro. 

The big picture: Energy storage for data centers is booming and battery makers across multiple sectors are here for it. 

How it works: Electrovaya's batteries use a ceramic separator, electrolyte and battery cell design that it says are safer, longer lasting and maintain high power density compared to traditional lithium-ion batteries. 

Catch up quick: The company, founded in 1996, pivoted to selling its battery tech to the material handling industry a decade ago after it failed to scale for EVs.

The company has now been EBIDTA profitable for over two years and is looking to expand into new industries like energy storage and robotics. 

Electrovaya trades on the Nasdaq and Toronto Stock Exchange and already sells Amazon its batteries for forklifts and other material handling equipment.

Zoom in: The new agreement could see Amazon buy more battery products, including for warehouse robotics and energy storage systems.

Amazon also received warrants to purchase Electrovaya stock as part of the deal. The warrants fully vest if Amazon buys $280 million worth of Electrovaya's batteries. 

If all the warrants vest and are exercised, Amazon would own shares equal to about 20% of Electrovaya's current outstanding shares.

Yes, but: Amazon will decide if it wants to exercise the warrants (and pay the exercise price) to become a shareholder.

Zoom out: Electrovaya sees a major opportunity in using its batteries for energy storage for data centers and plans to deliver an energy storage product in 2027, says Electrovaya CEO Raj Das Gupta, who's the son of Electrovaya co-founder Sankar Das Gupta.

The company has been making a big investment in a battery factory in Jamestown, New York and plans to start commercial deliveries there next year. 

The big picture: The market for energy storage systems is seeing major growth paired with data centers, clean energy projects, grid storage and industrial electrification.

Exclusive: Amazon agrees to battery deal with Electrovaya

Amazon will buy more batteries and receive a warrant package.

Autonomous yellow robot cart navigates a large warehouse aisle, flanked by tall orange metal shelves filled with uniform brown cardboard boxes.

Electric forklifts powered by Electrovaya's batteries move packages in warehouses. Photo courtesy of Electrovaya.

Decades-old Canadian battery maker Electrovaya has secured a commercial agreement and warrant transaction with Amazon, the companies tell Axios Pro. The big picture: Energy storage for data centers is booming and battery makers across multiple sectors are here for it.

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Exclusive: Amazon agrees to battery deal with Electrovaya

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