Vicinity Motor Corp. Announces Strategic Supply Agreement with Electrovaya for Lithium Battery Systems

Electrovaya to provide Lithium-ion battery systems for Vicinity electric vehicles

VANCOUVER, BC / ACCESSWIRE / October 13, 2021 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) ("Vicinity Motor," "Vicinity" or the "Company"), a leading North American supplier of commercial electric vehicles, today announced the formation of a strategic supply agreement with Electrovaya Inc. (TSX:EFL) (OTCQB:EFLVF) ("Electrovaya") for the supply of battery systems for the Company's line of Vicinity Lightning™ EV buses and fully electric VMC 1200 Class 3 trucks.

Electrovaya is a leader in the global energy transformation, focused on contributing to the prevention of climate change through its efforts to supply safe and long-lasting Lithium-ion batteries. Electrovaya designs, develops and manufactures Lithium-ion batteries, battery systems and battery-related products for energy storage, clean electric transportation and other specialized applications.

The agreement provides Vicinity with Lithium-ion battery systems that utilize the latest Electrovaya NMC ceramic lithium-ion battery technologies and will support full integration within Vicinity's line of vehicles.

"Our decision to collaborate with Electrovaya as a strategic supplier followed rigorous engineering and due diligence activities," said William Trainer, Founder and Chief Executive Officer of Vicinity Motor. "Sales momentum for our Vicinity Lightning™ EV lines of buses and our new fully electric VMC 1200 Class 3 Truck continues to scale, and this agreement secures our supply chain for the crucial battery component of our platforms. The Electrovaya batteries will provide confidence with prospective customers with a superior lifecycle performance and peace of mind with respect to safety."

"Vicinity customers using the Electrovaya battery system will experience best-in-class performance with our leading-edge technology," said Sankar Das Gupta, President and Chief Executive Officer of Electrovaya. "Our partnership will bring together two leaders in commercial and public vehicle electrification and deliver models at a price point suitable for mass deployment across small and large fleets. Vicinity Motor Corp. offers a highly competitive lineup of electric vehicles for the North American market and we expect our battery systems to help provide an additional competitive advantage to improve their adoption."