Covalo Technology, a California-based startup that makes batteries for the electric vehicle industry, is set to receive $25 million in a government-backed contract, bringing its total annual revenue to $35 million, according to a filing Thursday with the Federal Aviation Administration.
The award, for the company’s next generation battery, is worth $4.2 million, including $1.1 million in incentive payments.
The company has not disclosed the name of the government agency that awarded the contract, though the FAA has said it will be the US Department of Transportation.
Covalons new lithium-ion battery will be used in a range of electric vehicles, including the Chevy Bolt EV and Tesla Model 3.
The battery will also be used for Tesla’s new Semi trucks, the company said in a news release.
“Covalon Technologies will continue to be a leading innovator and supplier of lithium-air battery technology for the global electric vehicle and battery industry,” said Scott Gagnon, Covalone’s chief executive officer.
“Our mission is to develop, produce, manufacture, and market the world’s most efficient, safest, and cost-effective electric vehicle battery.”
Covalion is a leader in lithium-sulfur batteries, and it is among the largest lithium- ion manufacturers in the world.
The government awarded the $25-million contract in the summer of 2017 to Covalona, which was founded in 2016.
The deal is one of several contracts awarded to Cravid Technologies, a Texas-based company that makes high-tech solar cells and other solar cells.
That company has a $4 million contract with the government.
The Federal Aviation Authority has not commented on the Covalones latest deal.
The FAA’s Aviation Safety Advisory Committee (ASAC) approved Covaloon’s request for the $4-million incentive award in June.
Cravids new battery is the third-generation of the company�s advanced lithium-hydroxide batteries, which are more efficient than existing technologies, according the FAA.
The new battery will provide about 90 percent of the electric vehicles� battery range, Gagnone said in the statement.
The first-generation battery was developed in 2011, and was used in the Nissan Leaf, the electric car the company unveiled in late 2016.
Cascadia’s first-ever commercial-scale battery was produced in 2020, when the company was developing the Tesla Model S, and the company is now the lead supplier for the Chevy Volt.
The next generation of the battery is expected to be commercially available in 2021, the FAA said in its announcement.
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