Enovix Corp (NASDAQ:ENVX) shares are volatile Wednesday after rising 35% on Tuesday. Here's a look at what's going on.
What Happened: Enovix on Wednesday announced it signed a Memorandum of Understanding (MOU) with Elentec Co, a consumer electronic battery pack manufacturing company in Asia serving customers such as Samsung.
Enovix said the agreement enables the company to lock in a globally trusted battery pack manufacturing partner to support its growth with target customers worldwide. The MOU also allows Enovix to fast track and utilize Elentec's battery pack design and high-volume manufacturing capability.
"Our teams will collaborate closely to design battery packs meeting precise customer specifications. We anticipate significant opportunities to accelerate R&D and commercialization efforts through this partnership," said Raj Talluri, president and CEO of Enovix.
The two companies intend to enter a strategic partnership and collaborate in the custom development of Enovix battery cells into multiple battery packs for consumer, industrial and military applications to support both Enovix and Elentec's key customers.
The news comes after Enovix shares rallied 35% on Tuesday after the company signed an agreement with "a leading California-based technology company" to provide silicon batteries and packs for a mixed reality headset.
Enovix said it's set to receive a one-time payment for tooling to support battery pack dimensions immediately. The company will also receive payments for the delivery of both sample and production quantities. Enovix didn't provide details on which tech company it's working with.
"Devices in this market need to be light, fashionable, and safe while also supporting 'always-on' immersive experiences that leverage AI. Our high energy density batteries are uniquely suited to this task," said Samira Naraghi, senior vice president of product at Enovix.
ENVX Price Action: Enovix shares were bouncing around in early trading Wednesday. The stock was down 2.09% at $15.93 at the time of publication, according to Benzinga Pro.