Enovix Reaches Development Agreement with a Leading Smartphone OEM

Rhea-AI Summary

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Enovix (ENVX) has signed a development agreement with a top smartphone OEM, showcasing the value of their silicon batteries for next-gen smartphones. The company is manufacturing EX-1M battery cells based on customer specs, with samples expected in Q2 2024 and high-volume production at Fab2 facility in Malaysia.

Positive

• Enovix secures a development agreement with a major smartphone OEM, highlighting the recognition of their battery technology in the industry.

• The company's focus on meeting rigorous smartphone battery requirements reflects their commitment to innovation and customer satisfaction.

• Manufacturing of EX-1M battery cells based on customer specifications demonstrates Enovix's ability to tailor solutions to meet specific needs effectively.

• Initiating high volume production at the Penang facility signifies Enovix's readiness to scale operations and meet market demands efficiently.

Negative

• None.

Market Research Analyst

The agreement between Enovix and a top smartphone OEM is a strategic business development that could potentially reshape market dynamics. As OEMs continuously search for differentiation, Enovix's silicon battery technology, particularly the EX-1M, is positioned to elevate the consumer electronics experience by potentially extending battery life and supporting advanced AI applications. This partnership signals a vote of confidence in Enovix's technology and could catalyze further R&D investments in battery innovation.

Financial Analyst

This development agreement may translate into a significant revenue stream for Enovix, especially as it ramps up production at its Fab2 facility. The market should observe the capital expenditure implications and unit economics. Investors might consider the implications of scale for Enovix, with high volume production potentially leading to reduced costs per unit and increased margins over time. Additionally, sample deliveries set for the coming quarter provide a tangible short-term timeline for the next earnings call.

Tech Industry Expert

With the smartphone sector being particularly responsive to battery life enhancements, Enovix's silicon battery technology is highly relevant. Silicon anodes are touted for higher capacity than traditional graphite ones, hinting at longer battery life or smaller batteries with the same life, a significant competitive edge in the smartphone market. The mention of AI applications suggests these batteries may also be tailored for power-hungry, high-performance use, addressing a critical need in the rapidly evolving mobile tech landscape.

FREMONT, Calif., May 01, 2024 (GLOBE NEWSWIRE) -- Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, today announced it has reached a development agreement with one of the top five smartphone OEMs in the world by unit volume.

“We are thrilled to announce we have advanced our engagement further with one of our top customers by reaching a formal development agreement, underscoring the value and competitive advantage our silicon batteries can provide to the next generation of smartphones, beginning with EX-1M,” said Dr. Raj Talluri, President and CEO, Enovix. “Smartphone battery requirements are incredibly rigorous and set the standard for consumer electronics more broadly. Our goal is to provide our customers with a leading-edge battery that will enable demanding AI applications without compromising battery life.”

Enovix has begun manufacturing its EX-1M battery cells based on smartphone customer specifications and is on track to deliver first samples in the second quarter of 2024. High volume production will take place at the company’s Fab2 facility in Penang, Malaysia.

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 the 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, and beginning production in 2024 and mass volume production of mobile phone products in 2025. 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

The Blueshirt Group
Gary Dvorchak, CFA
Phone: (323) 240-5796
Email: gary@blueshirtgroup.com