Enovix Begins Customer Sampling of EX-1M Batteries

Rhea-AI Summary

Enovix has started customer sampling of its breakthrough EX-1M battery, aimed at IoT and smartphone customers. The company plans to ramp up production in Malaysia, consolidating manufacturing to reduce costs and accelerate profitability.

Positive

• Enovix has successfully started customer sampling of the EX-1M battery.

• The company's use of 100% active silicon anode in the battery boosts energy density.

• Consolidating manufacturing in Malaysia is expected to reduce fixed costs by over $35 million annually.

• Enovix's actions to reduce operational cash burn by over a third show commitment to financial strength.

Negative

• None.

Financial Analyst

The announcement by Enovix Corporation regarding the commencement of customer sampling for its EX-1M battery is a strategic development that signals a transition from research and development to market adoption. The focus on IoT and smartphone customers could potentially unlock new revenue streams. The shift of manufacturing to Malaysia, aiming to consolidate production and reduce fixed costs by an estimated $35 million annually, points to a leaner operational model. This operational restructuring can improve their financial metrics and may enhance investor confidence, especially considering the planned reduction of capital needs and the extension of the company's liquidity runway into 2026. However, the success of this move will hinge on the smooth scaling of manufacturing capabilities and market acceptance of the EX-1M battery technology.

Technology Analyst

The EX-1M battery technology, with its 100% active silicon anode, is noteworthy for potentially elevating the energy density, which is a critical parameter in battery performance. This technological enhancement could position Enovix favorably in the competitive high-performance battery market, especially within the burgeoning IoT and smartphone segments. The mention of AI compatibility suggests alignment with future tech trends, which could be a differentiator. However, the actual performance data of the EX-1M batteries and customer feedback post sampling will be definitive in assessing the technological advantage and impact on the company's market share and growth trajectory.

Market Research Analyst

From a market perspective, Enovix entering the sampling phase is an anticipatory signal of potential market expansion. By focusing on IoT and smartphones, they are targeting high-growth areas which are increasingly demanding more powerful and efficient batteries. If the EX-1M battery is well-received, it could capture a significant share in these segments. Nonetheless, it's essential to monitor how competitors respond and whether Enovix can scale up production without compromising quality. Adoption rates post sampling will be a vital indicator to evaluate the impact on the company's market position.

FREMONT, Calif., May 13, 2024 (GLOBE NEWSWIRE) -- Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, today announced that it has begun customer sampling of its breakthrough EX-1M battery.

Initial EX-1M samples were built and tested at the company’s facility in Fremont for IoT and smartphone customers. Enovix plans to build a larger number of EX-1M samples from its Agility Line at Fab2 in Malaysia later in the second quarter of 2024.

“We set out on an ambitious plan last year to build a battery that would meet the demanding requirements of leading smartphone customers,” said Dr. Raj Talluri, President and CEO of Enovix. “With EX-1M now sampling, we are ushering in a new era of lithium-ion battery technology by utilizing a 100% active silicon anode to boost energy density and allow customers to keep up with a growing array of energy needs with the onset of AI.”

Given strong customer interest and the readiness of Fab2, Enovix has begun taking decisive actions to consolidate manufacturing of all silicon batteries to Malaysia by July. Doing so puts the company on a path to reduce its fixed costs by over $35 million annually, significantly reducing its capital needs and accelerating the path to profitability.

Said Talluri, “Enovix is committed to maintaining a strong financial profile and with our recent actions to reduce our operational cash burn by over a third, we believe we have significant runway that extends into 2026 to meet customer needs as we ramp manufacturing.”

About Enovix
Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to the vehicle you drive, needs a better battery. Enovix partners with OEMs worldwide to usher in a new era of user experiences. Our innovative, materials-agnostic approach to building a higher performing battery without compromising safety keeps us flexible and on the cutting-edge of battery technology innovation.

Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia. For more information visit www.enovix.com and follow us on LinkedIn.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “believe”, “will”, “may”, “estimate”, “continue”, “anticipate”, “intend”, “should”, “plan”, “expect”, “predict”, “could”, “potentially", “target”, “project”, “believe”, “continue” or the negative of these terms or similar expressions. Forward-looking statements in this press release include, but are not limited to, statements regarding Enovix’s design win, ability of Enovix to sell Enovix products to mobile phone OEM customers, support of the company’s growth and scale up, cost reduction abilities, and mass volume production of products. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties. For additional information on these risks and uncertainties and other potential factors that could affect our business and financial results or cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (the “SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed annual periodic reports on Form 10-K and quarterly report on Form 10-Q and other documents that we have filed, or that we will file, with the SEC. Any forward-looking statements made by us in this press release speak only as of the date on which they are made and subsequent events may cause these expectations to change. We disclaim any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise, except as required by law.

For media inquiries, please contact:

Enovix Corporation
Kristin Atkins
Phone: +1 (650) 815-6934
Email: katkins@enovix.com

For investor inquiries, please contact:

Enovix Corporation
Charles Anderson
Phone: +1 (612) 229-9729
Email: canderson@enovix.com

FAQ

What is Enovix sampling for customers?

Enovix is sampling its breakthrough EX-1M battery for IoT and smartphone customers.

Where were the initial EX-1M samples built and tested?

Initial EX-1M samples were built and tested at Enovix's facility in Fremont.

When does Enovix plan to build a larger number of EX-1M samples in Malaysia?

Enovix plans to build a larger number of EX-1M samples in Malaysia later in the second quarter of 2024.

What is Enovix's goal in utilizing the 100% active silicon anode?

Enovix aims to boost energy density and meet the demanding requirements of leading smartphone customers with the 100% active silicon anode.

How much does Enovix aim to reduce fixed costs by consolidating manufacturing in Malaysia?

Enovix plans to reduce fixed costs by over $35 million annually through consolidating manufacturing in Malaysia.