Enovix To Acquire Korean Battery Cell Facility to Bolster Manufacturing
Enovix (ENVX) has announced the acquisition of battery cell manufacturing assets from SolarEdge in South Korea. The acquisition includes a 330,000-square-foot facility in Nonsan City, adjacent to Enovix's existing facility, along with development and manufacturing equipment. The facility has been operational for over 20 years.
The transaction, expected to close in April 2025, will expand Enovix's manufacturing footprint to meet growing defense industry demand. The company plans to hire key SolarEdge Korea team members across manufacturing, quality, R&D, and process engineering departments.
Enovix projects increased battery sales from the Korean facility in 2025 and 2026, with expectations of improved gross margins. The company forecasts a higher sales mix from this facility focusing on defense and industrial applications. The acquisition aims to simplify the supply chain and accelerate innovation for defense, industrial, and consumer electronics customers.
Enovix (ENVX) ha annunciato l'acquisizione di beni per la produzione di celle di batteria da SolarEdge in Corea del Sud. L'acquisizione comprende un impianto di 30.000 metri quadrati a Nonsan City, adiacente all'impianto esistente di Enovix, insieme a attrezzature per lo sviluppo e la produzione. L'impianto è operativo da oltre 20 anni.
La transazione, prevista per chiudere ad aprile 2025, espanderà la presenza produttiva di Enovix per soddisfare la crescente domanda dell'industria della difesa. L'azienda prevede di assumere membri chiave del team SolarEdge Korea nei reparti di produzione, qualità, ricerca e sviluppo e ingegneria dei processi.
Enovix prevede un aumento delle vendite di batterie dall'impianto coreano nel 2025 e 2026, con aspettative di margini lordi migliorati. L'azienda prevede una maggiore percentuale di vendite da questo impianto, concentrandosi su applicazioni per la difesa e industriali. L'acquisizione mira a semplificare la catena di approvvigionamento e accelerare l'innovazione per i clienti nei settori della difesa, industriale ed elettronica di consumo.
Enovix (ENVX) ha anunciado la adquisición de activos de fabricación de celdas de batería de SolarEdge en Corea del Sur. La adquisición incluye una instalación de 30,000 pies cuadrados en la ciudad de Nonsan, adyacente a la instalación existente de Enovix, junto con equipos de desarrollo y fabricación. La instalación ha estado en funcionamiento durante más de 20 años.
La transacción, que se espera se cierre en abril de 2025, ampliará la huella de fabricación de Enovix para satisfacer la creciente demanda de la industria de defensa. La empresa planea contratar a miembros clave del equipo de SolarEdge Korea en los departamentos de fabricación, calidad, I+D e ingeniería de procesos.
Enovix proyecta un aumento en las ventas de baterías de la instalación coreana en 2025 y 2026, con expectativas de márgenes brutos mejorados. La compañía prevé una mayor mezcla de ventas de esta instalación enfocándose en aplicaciones de defensa e industriales. La adquisición tiene como objetivo simplificar la cadena de suministro y acelerar la innovación para los clientes de defensa, industriales y de electrónica de consumo.
Enovix (ENVX)는 한국의 SolarEdge로부터 배터리 셀 제조 자산을 인수했다고 발표했습니다. 이 인수에는 Enovix의 기존 시설 옆에 위치한 논산시에 있는 30만 평방피트 규모의 시설과 개발 및 제조 장비가 포함됩니다. 이 시설은 20년 이상 운영되고 있습니다.
2025년 4월에 마무리될 것으로 예상되는 이번 거래는 방산 산업의 증가하는 수요를 충족하기 위해 Enovix의 제조 기반을 확장할 것입니다. 회사는 제조, 품질, 연구개발 및 공정 엔지니어링 부서에서 SolarEdge Korea 팀의 핵심 구성원을 채용할 계획입니다.
Enovix는 2025년과 2026년 동안 한국 시설에서 배터리 판매 증가를 예상하며, 개선된 총 마진을 기대하고 있습니다. 이 회사는 방산 및 산업 응용 프로그램에 중점을 두어 이 시설에서 더 높은 판매 비율을 예측하고 있습니다. 인수의 목적은 공급망을 단순화하고 방산, 산업, 소비자 전자 제품 고객을 위한 혁신을 가속화하는 것입니다.
Enovix (ENVX) a annoncé l'acquisition d'actifs de fabrication de cellules de batterie auprès de SolarEdge en Corée du Sud. L'acquisition comprend une installation de 30 000 pieds carrés dans la ville de Nonsan, adjacente à l'installation existante d'Enovix, ainsi que des équipements de développement et de fabrication. L'installation est opérationnelle depuis plus de 20 ans.
La transaction, qui devrait se conclure en avril 2025, élargira l'empreinte de fabrication d'Enovix pour répondre à la demande croissante de l'industrie de la défense. L'entreprise prévoit d'embaucher des membres clés de l'équipe de SolarEdge Korea dans les départements de fabrication, de qualité, de R&D et d'ingénierie des processus.
Enovix prévoit une augmentation des ventes de batteries de l'installation coréenne en 2025 et 2026, avec des attentes d'amélioration des marges brutes. L'entreprise anticipe un mélange de ventes plus élevé provenant de cette installation en se concentrant sur les applications de défense et industrielles. L'acquisition vise à simplifier la chaîne d'approvisionnement et à accélérer l'innovation pour les clients des secteurs de la défense, industriel et de l'électronique grand public.
Enovix (ENVX) hat die Übernahme von Fertigungskapazitäten für Batteriezellen von SolarEdge in Südkorea bekannt gegeben. Die Übernahme umfasst eine 30.000 Quadratfuß große Anlage in Nonsan City, die an die bestehende Anlage von Enovix angrenzt, sowie Entwicklungs- und Fertigungsanlagen. Die Anlage ist seit über 20 Jahren in Betrieb.
Die Transaktion, die voraussichtlich im April 2025 abgeschlossen wird, wird die Produktionskapazität von Enovix erweitern, um der wachsenden Nachfrage der Verteidigungsindustrie gerecht zu werden. Das Unternehmen plant, Schlüsselmitarbeiter des SolarEdge Korea-Teams in den Bereichen Fertigung, Qualität, F&E und Prozessengineering einzustellen.
Enovix prognostiziert einen Anstieg der Batterieverkäufe aus der koreanischen Anlage im Jahr 2025 und 2026, mit der Erwartung verbesserter Bruttomargen. Das Unternehmen rechnet mit einer höheren Verkaufsquote aus dieser Anlage, die sich auf Anwendungen in der Verteidigung und Industrie konzentriert. Die Übernahme zielt darauf ab, die Lieferkette zu vereinfachen und Innovationen für Kunden aus den Bereichen Verteidigung, Industrie und Unterhaltungselektronik zu beschleunigen.
- Acquisition expands manufacturing capacity with 330,000-square-foot facility
- Strategic location adjacent to existing facility in Nonsan City
- Expected improvement in gross margins
- Projected increase in battery sales for 2025-2026
- Access to experienced workforce from SolarEdge Korea
- Enhanced ability to serve defense and industrial markets
- Subject to closing conditions that could delay or prevent completion
- Integration costs and risks with existing operations
- Potential operational challenges in managing expanded facilities
Insights
Enovix's acquisition of SolarEdge's 330,000 square foot Korean battery cell facility represents a significant manufacturing expansion with multiple strategic advantages. The adjacent positioning to their existing Nonsan City operations creates immediate operational synergies through shared resources, logistics efficiencies, and unified quality control systems.
The facility's 20-year operational history indicates established manufacturing infrastructure, though likely requiring targeted modernization investments to align with Enovix's proprietary battery technology. Selectively retaining SolarEdge's technical personnel across manufacturing, quality, R&D and process engineering departments minimizes knowledge transfer risks while maintaining operational continuity.
Most significantly, this acquisition accelerates Enovix's production scaling timeline considerably compared to greenfield development. The transaction addresses manufacturing capacity constraints that typically bottleneck battery startups transitioning to commercial scale. The defense industry focus signals a strategic prioritization of applications requiring higher reliability standards and more stringent testing protocols, which typically command premium pricing but demand exceptional manufacturing precision.
This manufacturing footprint expansion strengthens Enovix's vertical integration capabilities, enabling better control over quality-critical processes while reducing supply chain vulnerabilities. The combined Korean manufacturing hub should deliver meaningful economies of scale that support the projected gross margin improvements mentioned in the announcement.
Enovix's acquisition of SolarEdge's Korean battery manufacturing assets represents a strategically sound investment that addresses several financial objectives. Most notably, the company explicitly forecasts improved gross margins as a direct result of this transaction, suggesting favorable acquisition economics compared to building new capacity from scratch.
The pivot toward increased defense and industrial applications indicates a deliberate focus on higher-margin, less price-sensitive market segments compared to consumer electronics. Defense contracts typically feature better payment terms, longer product lifecycles, and more stable demand forecasting - all beneficial for financial planning and capital efficiency.
While the purchase price remains undisclosed, the operational synergies from acquiring a facility adjacent to existing operations should create meaningful cost efficiencies through shared overhead, simplified logistics, and consolidated management. The projected sales increase for 2025-2026 from Korean manufacturing suggests this acquisition is timed to address anticipated demand growth without capacity constraints.
For investors, this transaction demonstrates management's commitment to achieving production scale while simultaneously improving margin structure - addressing two critical challenges for battery technology companies. The ability to simplify supply chains should reduce working capital requirements while accelerating cash conversion cycles. The transaction appears structured to leverage existing operational expertise through selective personnel retention, minimizing integration risks that often undermine acquisition economics.
Acquisition will support company’s efforts to meet growing demand in the defense industry
FREMONT, Calif., April 03, 2025 (GLOBE NEWSWIRE) -- Enovix Corporation (Nasdaq: ENVX), a global high-performance battery company, today announced the acquisition of battery cell manufacturing assets from SolarEdge, located in South Korea. The acquisition will expand the company’s manufacturing footprint and help position Enovix to meet growing demand in the defense industry. The transaction is expected to close in April 2025, subject to the satisfaction of customary closing conditions.
Enovix will be acquiring a battery cell manufacturing facility from SolarEdge that is approximately 330,000 square feet, as well as battery cell development and manufacturing equipment. The SolarEdge facility has been operating for over 20 years. The facility to be acquired is directly adjacent to the company’s existing facility in Nonsan City, South Korea. Enovix plans to hire certain members of the SolarEdge Korea team including personnel in the manufacturing, quality, R&D and process engineer departments. The acquisition is expected to expand Enovix’s manufacturing capacity and expedite scaled production.
“Better batteries are in high demand for many of the economy’s most critical industries, and Enovix is committed to building longer-lasting and more effective batteries that improve the world we live in,” said Dr. Raj Talluri, Enovix CEO and president. “By expanding our battery production facility in Korea we believe we will be able to simplify our supply chain, accelerate the pace of innovation and address the growing list of use cases for defense, industrial and consumer electronics customers.”
Enovix’s sales from batteries manufactured in its Korea facility are projected to increase in 2025 and 2026 facilitated in part by this acquisition which is expected to improve gross margins going forward. The company also now forecasts a higher sales mix from this facility going to defense and industrial applications.
“From its inception, Enovix has focused on breakthrough battery innovation and operational excellence,” said T.J. Rodgers, Enovix chairman. “This acquisition is a step in advancing that mission at scale as it will ensure greater control over quality and strengthen our ability to deliver solutions to a wider range of customers more efficiently.”
Forward-Looking Statements
This 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 and can be identified by words such as anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, possible, potential, predict, should, would and similar expressions that convey uncertainty about future events or outcomes. Forward-looking statements include, without limitation, our expectations regarding, and the timing of, the acquisition of battery cell manufacturing assets from SolarEdge; our expectations about, and our ability to respond to, market and customer demand; our customers’ releases of products using our batteries; our financial and business performance; projected improvements in our manufacturing, commercialization and R&D activities; our expectations regarding, and our ability to realize, the benefits of the acquisition, including our ability to expand our manufacturing footprint, the transaction’s ability to position us to meet growing demand in the defense industry, our expectation that the acquisition will expand our manufacturing capacity and expedite scaled production; our ability to simplify our supply chain, accelerate the pace of innovation and address the growing list of use cases for defense, industrial and consumer electronics customers, the projected increase in battery sales in 2025 and 2026 facilitated in part by the acquisition, gross margin improvements expected from the transaction, and our revised forecasts of higher sales mix from this facility going to defense and industrial applications; our ability to realize synergies from the acquisition, including the ability to accelerate product development and deliver products to a wider range of customers more efficiently. Actual results and outcomes could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the satisfaction of applicable closing conditions and the consummation of the contemplated transactions relating to the acquisition, our ability to realize the benefits of and synergies from the acquisition, including those listed above, market acceptance of our products, the impact of technological development and competition, and global economic conditions. 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 report on Form 10-K and quarterly reports 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 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.
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 vehicles and headsets, needs a better battery. The company has developed an innovative, materials-agnostic approach to building a higher performing battery without compromising safety, and it partners with OEMs worldwide to usher in a new era of user experiences.
Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia. For more information visit www.enovix.com and follow the company on LinkedIn.
Investor Contact:
Enovix Corporation
Robert Lahey
Email: ir@enovix.com
Media Contact:
Bateman Agency for Enovix
Kaelyn Attridge
Email: enovix@bateman.agency
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