Ultracharge lands another scooter battery buyer; shares swell 88pc
Ultracharge is beginning to become an electric scooter go-to, after winning its second ever order which is, again, for scooter batteries.
Israeli scooter company Roadix has contracted Ultracharge — a cobalt-free lithium battery maker — to deliver 16,000 batteries over three years.
The ASX company (ASX:UTR) has a year to build and test the batteries first.
Even though Ultracharge did not put a figure on this contract, investors bought in: the stock shot up 88 per cent to an intraday high of 1.5c.
The first purchase the company received for its batteries was in May from another Israeli scooter company called Blitz.
That deal was for 28,000 batteries over three years, and Blitz committed to a minimum order worth $4m in the first 12 months.
But where the Blitz deal was for electric motorcycle scooters, the Roadix deal is for the kind you stand on.
UltraCharge CEO Kobi Ben-Shabat said the later deal showed they could make bespoke batteries.
“UltraCharge is one of only a handful of pure lithium-ion battery listed companies in the world with the ability to produce a lithium-ion battery and we are well placed to capitalise on the rapidly emerging global opportunities for lithium-ion batteries,” he said.
Ultracharge shareholders are looking at their first revenue from May next year.
At the end of September the company had $1.5m in the kitty and a burn rate of $600,000 to $800,000 a quarter, suggesting the company will need to raise money before it starts pulling revenue.
Ultracharge has been contacted for comment.