1

Green Energy: The Story ofElectrovaya

Dr. Sankar DasGuptaCEO, Electrovaya

|1

March/April 2010

1

Disclaimer: Forward Looking Statement

This presentation contains historical and forward-looking statements. The forward-looking statements involve risks and uncertainties. Forward looking statements appearing in this presentation represent management’s current estimates and these may change significantly as new information comes to hand.

The information contained in this presentation has been obtained by Electrovaya Inc. from its own records and from other sources believed to be reliable, however no representation or warranty is made as to its accuracy or completeness. Reference should be made to the Company’s most recent Annual Report filed with

|2

made to the Company s most recent Annual Report filed with Canadian securities regulatory authorities (and available at www.sedar.com) for a description of the major risk factors.

2

“One million plug-in hybrid carsby 2015”

President Barack Obama

|3

Company Overview

3

Experienced Management Team

Dr. Sankar Das GuptaChairman & Chief Executive Officer

Paul L. HartChief Financial Officer

Founded company in 1996 with Dr. James JacobsExtensive business experience in the technology sector at Electrovaya and HSA Reactors Limited

Tom LaSordaSpecial Advisor to the CEO& Member of the Board of Directors

Joined Electrovaya in March 2010Former CEO, Chrysler Distinguished 23-year career with GM including President of O l Ei b h

Joined Electrovaya in 2003Previously CFO of Public/Privately Held Companies, including Bid.com (dual listed TSX/NASDAQ) and ADP Canada M&A experience for key acquisitions

|4

LimitedHolds a PhD in Electrochemistry from Imperial College, University of London and is an adjunct professor at the University of Toronto. He also serves as a corporate Ambassador for the Province of Ontario and is a Charter Founder Member of TIE-Toronto.

Opel, Eisenbach Recently was Advisor to Penske Automotive Group in their bid to purchase Saturn

M&A experience for key acquisitions in the financial services and venture capital industries Previously also at PriceWaterhouse-Coopers, Bank of MontrealChartered Accountant, MBA (Finance)

3

Why Electrovaya?Large and High Growth End Markets- Driving the Electrification of the Transportation industry - $0 to $20B+ market by 2015

- Enabling Green and Renewable Energy – Electricity Storage $60B opportunity by 2015

Highly Differentiated Battery Technology (>150 patents)- Superior performance: High energy density cells with nanostructured electrolytes

- Lower cost curve due to reduced materials usage; smaller size and weight

- Platform Technology: benefits from other chemistry advances continuous increase of energy density

Clean and Low cost Manufacturing- World’s only NMP-Free process: NMP suspected as a reproductive toxicant (generates birth defects)

- Lower future liabilities; lower insurance and legal liabilities; improved customer perceptions

- Significantly lower CapEx & OpEx Faster build up of manufacturing capacity at fraction of Capital Cost

Global Customers and Partners- North America: Chrysler and many others

|5

- Asia and Europe: Major Tier 1 Partners

Strong Management Team - Strong existing team & key people already identified for management positions to drive and manage growth

Access to Growth Capital - Receipt of Grant Program: Chrysler/Electrovaya/US DOE on Ram Truck (2nd largest vehicle after the Minivan)

- Poised for Major Manufacturing Expansion: Applied for DOE loan (80%+ financing basis)

Large & Growing Transportation Market

Global Automobile Market*

~7% of Cars in 2015 to

Electric vehicles including plug‐in hybrids and pure‐electrics

2010 2015 2020

Total Units% of Total Units Attributable to

HEV, PHEV and EV Units

Be Electric*

Global Lithium-Ion Battery MarketFor Automotive**

Market Drivers

Government Regulation

$74.1

7.1%19.6%

2.1%

|6* J.D. Power (assumes ~2% global auto market growth from 2015 to 2020) and Equity Research** A.T Kearney

($ in billions)

For Automotive– Advanced Technology Vehicle Manufacturing Loan Program (ATVMLP)

– Corporate Average Fuel Economy

– Tax credits for buyers of electric cars

High Prices of Conventional Oil

Increased Environmental Awareness

$0.0

$21.8

2009 2015 2020

4

Key Drivers

Alternative energy solutions such as wind and solar can provide sporadic service / energy

Emerging Stationary Energy Storage Market

Global Energy Storage Market*($ in Billions)

The stationary storage business is rapidly increasing; lithium ion is projected to gain share

$220

TAM

gy

Utility companies faced with the challenge of ensuring reliable service

Lithium ion batteries will play a key role in stabilizing the electric grid

- Act as ancillary power units to provide frequency regulation and smooth the grid during fluctuations in demand

- Store electricity during off-peak hours, making it available during peak hours

$10

$60

2010 2015 2020

Ene

rgy

Sto

rage

|7

making it available during peak hours

Under the American Recovery and Reinvestment Act, ARRA, the U.S. Government allocated $4.5 billion for utilities to invest on the U.S. electric grid in order to stimulate investment in smart grid technologies

* Equity Research

2010 2015 2020

Lithium-ion battery technology is expected to capture a

meaningful portion of this large and rapidly growing market

One Million Plug in Vehicles: N.American Auto Partnerships4 Chosen Tier‐1 Suppliers for this Emerging $22‐bililion global market by 2015. Electrovaya is the only public pure‐play battery company selected to supply batteries for an approved DOE project by a major North American automobile manufacturer. 

Automotive Energy Supply Corporation

|8Source: Equity Research

5

Chrysler’s Strategic Battery Partner

Battery pack size: 12 kWh

Electrovaya responsible for both

cells and complete integrated

battery system

Electrovaya is the battery partner to Chrysler’s Ram Truck Plug‐in Hybrid Electric Vehicle Program

battery system

Sole provider of battery systems to

Chrysler’s Dodge Ram program:

$48mm DOE-funded program

The battery selection is the most

critical strategic and high cost

component

|9

p

Chrysler Announced Electric Plan

on Nov.4th 2009 where it identified

Ram Truck PHEV and Town &

Country Minivan to be

commercialized

“It’s the batteries stupid”

The Honorable R. James WoolseyThe Honorable George P. ShultzCo-Chairmen

|10

Our Solution

6

Intellectual PropertyWe have the critical technology (Battery, BMSD, Systems, Thermal Interfaces 

to Automotive) to provide end‐to‐end solutions for our customers

We have over >150 patents or patents pending

– 90 issued national patents

– 88 pending patents

– 20 issued US patents

Our patent coverage focuses on areas where potential markets / manufacturing activities make patent protection desirable and economically justifiable, specifically the U.S., Canada, Europe, India, China, Japan

Our Patents address the following areas:

– Structural technology innovations (platform)

|11

Structural technology innovations (platform)

– System-level designs

– iBMS® - Intelligent Battery Management System

– Nanomaterials

– Processes

Four key areas of core technology/product advantages 

Key Technology Differentiators

olog

y

Nanostructure Innovation

Unique Clean Low-cost

Manufacturing Process

Large Format Prismatic Cell

Specialist

Integrated Pack / Systems

Tech

no

|12

• Low CAPEX• Low OPEX• Faster capacity build• No Future Liabilities• No Negative PR

• Low CAPEX• Low OPEX• Faster capacity build• No Future Liabilities• No Negative PRB

enef

it • Lower cost curve due to superior energy density

• Enables continuous improvements

• Lower cost curve due to superior energy density

• Enables continuous improvements

Preferred for Large Battery

Systems (auto, grid)

Preferred for Large Battery

Systems (auto, grid)

Higher Value-added,

Non-commoditized

Business

Higher Value-added,

Non-commoditized

Business

7

Superior Energy Density & Roadmap

185 Wh/kg

= 10 Wh/kgNi k l C b lt

Nickel ManganeseCobalt (NMC)

Lithium IonSuperPolymer

(Lab)

Packaging more energy in less volume/weight enables smaller, lighter battery solutions. It also ultimately ensures lowers component cost curves. Lithium Ion

SuperPolymer(Today)

110 Wh/kg

70 Wh/kg

Lithium ManganeseSpinel and Lithium

Titanium(LMO/LTO)

Lithium ManganeseSpinal (LMO)

Nickel CobaltAluminum (NCA)

Lithium Iron Phosphate (LFP)

|13Source: Equity Research.

Other Chemistries / Technologies

Lead Acid

Cell Integrated Pack SolutionsElectrovaya offers a complete battery system which includes integrated mechanical, thermal, electrical and power electronic subsystems. This is a high‐value added, non‐commoditized business.

Battery Systems Engineering

|14

8

Unique, Clean Manufacturing Process

Typical Lithium Ion Battery Manufacturing

Electrovaya offers “Zero-Emission Manufacturing for Zero-Emission Vehicles”

VS.

No use of NMP

Financial advantage relative to alternative – higher margins and lower capital costs

Less risk of future liabilities

Capable of manufacturing in urban

|15

Capable of manufacturing in urban areas

Complements customer and partners’ vision of green supply chain

Low-cost Manufacturing Capacity‣ Mississauga, Ontario Canada

– 2nd largest dry room in North America

– 155,000 sq. foot facility on 15 acres

– 2010: 100MWh / annum

– 2012: 200 MWh / annum

‣ US Location:

– 2011: 500 MWh/annum

|16

Images: Top: 15 acre Mississauga PlantBottom Left: Outside of dry roomBottom Right: Modular mfg. production

– Target 2014: 1000 MWh/annum

‣ Joint Venture – Europe

‣ Joint Venture – India

‣ Joint Venture – Japan

9

Electrovaya: The Only Complete Solution

Nanostructure that lowers cost curve

Competitors

NONE

No other competitor offers a solution that meets all critical battery solution attributes. 

Large-format prismatic cells

Integrated pack/systems solutions

Clean manufacturing process

Excellent Cycle Life

S i U bl E D it

Some

Some

NONE

Most

|17

Superior Usable Energy Density

Good Safety

Low-cost North American Mfg.

Most

Most

Few

|18

7932671 Our Customers & Partners

23

10

Global Auto Partners in every Sector

TraditionalOEMs

Passenger Startup OEMs

2-Wheelers Off-RoadUrban

Vehicles

Electrovaya has engaged in advanced discussions with unnamed parties who have shown interest in our proprietary battery solutions. While we develop those relationships, we’ve also announced the following customer relationships:

TraditionalOEMs

|19

subsidiaryMiljøbil

Medium & Heavy Duty

Confidential Parties in Advanced

DiscussionsConfidential Parties in Advanced Discussions

Utility/Grid Partners Electrovaya is in discussions with many parties across the spectrum of the applicable utility storage market as detailed below. While we develop those relationships, we’ve also announced some partners also shown below.

Generation Transmission Distribution

Spectrum of Utility Applications :: advanced partner discussions

Announced Partners:

|20

$7.5-million total project (Feb-10)

- Intermittent (renewable) generation

- High-density urban solutions for new electric loads

- Repurposed electric vehicle batteries

Japan Partnership (Nov-09)

NKE is the only company in Japan that provides distribution equipment to all of the major 10 electric power utilities in Japan.

Members including

11

|21

|22

Financial Overview

32

12

Financials – Then vs. Now

2000 - Today Today Future

Heavy investment (~$100M) in R&D to d l b t i l

Aggressively develop relationships and

t t f

Test and launch batteries for new

tdevelop best-in-class technology

Government projects and consumer products drive demand but volume insufficient to require a ramp in scale

secure contracts for future projects

Demand driven through transportation and energy storage markets

Prepare for

revenue streams

Significant investment in CapEx to support revenue growth

Automated production provide lower operational costs

|23

Parsimonious spending (and no debt) dictated by little investment from external sources and heavy R&D burden

Prepare for production expansion through applications for funding from the government and accessing public markets

Increased scale drives pricing concessions from suppliers and leads to higher margins

Change the world

Historical FinancialsConsolidated Income Statement

Fiscal Year Ended September 30, Fiscal Qtr. Ended December 31, As of 12/31/09

(US$ in 000’s, Expect per Share Amounts) 2007 2008 2009 2008 2009 LTM

Revenue $2,344 $2,541 $3,782 $792 $920 $3,910

Direct Manufacturing Costs 3,351 1,381 1,323 445 733 1,611

Gross Profit / (Loss) (1,007) 1,160 2,459 347 187 2,299

Expenses

Research and Development 2,061 3,906 3,920 944 450 3,426

Salesand Marketing 1 562 1 503 1 740 343 346 1 743Sales and Marketing 1,562 1,503 1,740 343 346 1,743

General and Administrative 346 500 256 96 53 213

Warranty (229) 22 51 14 18 55

Government Assistance / Investment Tax Credits Recoverable (1,174) (836) (3,203) (535) (718) (3,386)

Total Operating Expenses Before Amort izat ion Expense 2,566 5,095 2,764 862 149 2,051

Earnings / (Loss) Before Interest Expense, Taxes, Amortizat ion (3,573) (3,935) (305) (515) 38 248

Amort izat ion Expense 646 565 503 115 133 521

Earnings / (Loss) from Operations (4,219) (4,500) (808) (630) (95) (273)

Interest Income (Expense) 281 159 34 19 2 17

Gain / (Loss) from Foreign Exchange (703) 386 197 637 (151) (591)

Pretax Income / (Loss) (4,641) (3,955) (577) 26 (244) (847)

Income Tax / (Income Tax Recovery) -- 100 -- -- -- --

Net Income / (Loss) (4,641) (4,055) (577) 26 (244) (847)

|24

Key Balance Sheet ItemsAs of Fiscal Year Ended September 30, As of December 31,

(US$ in 000’s, Expect per Share Amounts) 2007 2008 2009 2009

Cash and Cash Equivalents / Short-term Investments $7,247 $4,934 $5,614 $5,243

Capital Assets 6,672 5,923 5,553 5,662

Long-term Liability / Related Party Obligation 357 24 -- --

Shareholders’ Equity 14,867 10,144 10,117 10,220

13

Why Electrovaya?Large and High Growth End Markets- Driving the Electrification of the Transportation industry - $0 to $20B+ market by 2015

- Enabling Green and Renewable Energy – Electricity Storage $60B opportunity by 2015

Highly Differentiated Battery Technology (>150 patents)- Superior performance: High energy density cells with nanostructured electrolytes

- Lower cost curve due to reduced materials usage; smaller size and weight

- Platform Technology: benefits from other chemistry advances continuous increase of energy density

Clean and Low cost Manufacturing- World’s only NMP-Free process: NMP suspected as a reproductive toxicant (generates birth defects)

- Lower future liabilities; lower insurance and legal liabilities; improved customer perceptions

- Significantly lower CapEx & OpEx Faster build up of manufacturing capacity at fraction of Capital Cost

Global Customers and Partners- North America: Chrysler and many others

|25

- Asia and Europe: Major Tier 1 Partners

Strong Management Team - Strong existing team & key people already identified for management positions to drive and manage growth

Access to Growth Capital - Receipt of Grant Program: Chrysler/Electrovaya/US DOE on Ram Truck (2nd largest vehicle after the Minivan)

- Poised for Major Manufacturing Expansion: Applied for DOE loan (80%+ financing basis)

Questions and Answers

Dr. Sankar DasGuptapFounder and CEO, Electrovaya

Tom LaSordaBOD and Special Advisor to the CEO

|26

March/April 2010