We don’t know the full story concerning the events leading up to the design tweak announced on Wednesday.
Nor do we know which smartphone/market Honor will place the battery.
We do know that Honor and Envx have for more than a year been collaborating very closely and meet weekly and that Honor is happy with progress. If Honor wasn’t happy they would have walked, but instead they allowed their name to be publicly announced.
Honor has been involved in the development of the cell and would’ve known there was a chance that it might fall short of 1000 cycles in their upcoming smartphone. They clearly want to advertise their new phone battery as having all these groundbreaking features to include good cycle life. Honor could have accepted the existing AI-1 with 900+ cycles. The whole process is customer led and it was doubtless Honor who instigated the design tweak. (Envx are not at the stage where they can tell customers to take it or leave it).
The PR in July announcing AI-1 said it had 900+ cycles. Yet just 3 weeks later in the ER, Envx said the cell had a “projected” cycle life of 1000. That estimate based on some internal tests transpired to be a little optimistic (in hindsight, revealing this projected figure was an error).
But Honor really wanted to push the cycle life limits to get to the magic 1000 number.
Envx can hardly be seen to criticize their treasured customer for not making do with the 900 lifecycle figure.
The quotes below make more sense in this context.
Raj: “We’ve now figured out what it takes to get to 1,000 cycles. We have that chemistry now that we’ll be sampling in 4Q. You can see now that the next customer will actually get samples that we would have validated for 1,000 cycles. You can see this problem that we are now addressing would have been solved, because we’ve now got ahead of that
There are a lot of things we learned with our collaboration with Honor. How they do the drop test, how they do a cycle life test..”
In Q&A the William Blair analyst said, “Congrats on naming Honor as your lead smartphone customer. This is a big name in China. Unfortunately, though, it looks like they want 1,000 cycles now. Is this correct? How much of this was a surprise to the team, and what’s required on the design front to achieve that?”
Raj – “Yeah, Mark, the requirement has always been 1,000 cycles. As I mentioned in the last earnings call. It’s a development program that we’re working together with them. We gave them samples in July, and we were doing cycle life testing while they were doing cycle life testing on the same batteries we provided. As we went along in this testing process, we realized that we need to make one more small design change to get to the full performance that THEY want.”
In answer to a question from the Cantor analyst, Raj replied:
“.. these are not like chips where we can do simulation and figure out what will happen, what will not. For example, when I used to build processors, we’d have a simulation model. We would do analysis. We’d know what we’d do, and then tools will help you do it. When you tape out, you’re pretty much guaranteed to get it. Unfortunately, in batteries, you just have to run for 1,000 cycles before you know if you got it. That’s just the nature of it. The good news is once you get it, you have it. The first one is hard, but I feel pretty confident..”
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lynn:
William Blair 8/18/25:
“Benton was very confident that the deep two-year engagement with the lead customer has little risk of last-minute design tweaks and in securing a PO by end of year.”
Whatever caused this chemistry change probably happened in October.
If Honor decides to tweak something, what is ENVX going to do? Client is always right. Especially because they literally hand-held & educated ENVX the smartphone battery qualification process. As Steve Jobs said – want to ship mediocrity now or revolutionary product later.
Enovix just admitted it needs to “change chemistry” and that this will delay commercialization. For anyone with industry experience, that phrase is a red flag. You don’t change chemistry mid-qualification unless the current cell failed OEM validation, whether due to cycle life collapse, swelling, thermal instability, or manufacturing yield issues.
Silicon-dominant anodes are notoriously unstable without a finely tuned electrolyte system. If Enovix’s original chemistry couldn’t maintain volume expansion control or SEI stability through full qualification cycles, that’s not a small tweak , that’s a core material failure. And once you touch the electrolyte or binder formulation, all prior validation data becomes obsolete. You’re basically restarting the qualification clock.
OEMs (especially Tier-1 smartphone customers) run multi-month reliability and abuse tests. A reformulation now means Enovix likely missed one or more customer test gates. So “chemistry change” really reads as “the battery didn’t pass, and we need to go back to the lab.”
The company is still talking about ramp timelines, but chemistry reformulation plus re-qualification is a 6–12 month detour at best. That’s before you even factor in process tuning for high-volume manufacturing.
After years of promising mass production “next year,” now the core chemistry itself is in flux. Until they can show consistent OEM-qualified cells with stable cycle life and manufacturable yield, ENVX remains a high-risk R&D story, not a production-ready battery company.
Name-dropping a customer doesn’t change the physics. OEMs let partners reference them all the time in development programs; it’s PR, not proof of qualification. Having your logo on a CES booth doesn’t mean your cells have passed validation or are anywhere near production sign-off.
Chemistry changes mid-development are not “common” at this stage. You only swap core electrolyte or SEI formulations after extended cycle testing exposes a failure mode that can’t be tuned out. That means Enovix’s current chemistry didn’t meet spec…period. When that happens, every reliability test has to restart from zero.
OEMs hedge; they can keep a partner’s name on the slide deck while simultaneously qualifying backup suppliers. It costs them nothing to maintain optionality. What matters is qualification data, yield, and delivery, not whose name is mentioned in a press release.
That’s not how OEM partnerships work. Public name usage doesn’t prove qualification; it just means the legal NDA around disclosure was relaxed, likely for mutual marketing purposes. Large OEMs often allow early-stage partners to use their name to highlight innovation, even if the tech isn’t production-ready. It doesn’t mean the product passed validation or will ship.
If Enovix’s chemistry truly met spec, they wouldn’t be changing it now. The timing tells the story, you don’t reformulate the electrolyte or SEI interface “for fun” right after a major OEM test cycle. That’s the definition of a failed qualification loop.
Honor keeping them engaged isn’t proof of success, it’s proof of optionality. OEMs maintain multiple parallel programs; they’ll keep a supplier involved until the last possible moment in case the reformulation works. It costs them next to nothing, but it costs Enovix time and cash.
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if it failed entirely and had no chance the customer would be gone, this is the absolute fact. But they aren’t… no doubt Enovix wanted to use their name over the past year+ but Honor didn’t allow it, which is standard practice when it comes to big companies doing deals with small public companies. The small company ALWAYS wants to use the name, it’s powerful marketing … but Honor finally let them, which means the relationship is just fine. Why would they want their name associated with a failed product they do not plan to use? You and I can make any claim we want, but these facts matters more than anything…. AI-1 is a platform where every aspect of the battery can be tweaked by the customer. They want to make another tweak, it happens. This battery is likely going to be sold in multiple countries, in multiple models, per Raj. They plan to use it heavil imo, because it surpasses everything else…but first they need to get it right, and will imo
then why did this credible and very large customer allow them to use their name (announced this week) after a year+ of not allowing it?… and why is a tech company going to be featuring their battery at CES? If it truly failed, I’d imagine they would have moved on to another battery by now… not give them approval to make their relationship public. This is a big deal for a highly credible international company. They are putting their NAME behond Enovix now. Why?! Adjustments to battery chemistry are common. This is a joint development process… having to wait a few more months sucks, but it’s part of the process towards achieving something significant… if it was easy, it wouldn’t have taken decades to develop a new battery architecture for phones. Enovix is closer than anyone has ever got and MANY have tried.
don’t quite understand how if they were working working so closely with Honor and having weekly calls they did not understand the requirement for it to go 1000 cycles?
WantedToRetireEarly
Can’t go burning cash for more months, scale fabs & teams, hire & pay them well, when you can’t figure out how to make a FKN sample that meets your FKN key & first customer’s requirements!
Kashmanchew II
What’s happening at Enovix should alarm every investor.
In Q2 2025, CEO Raj Talluri proudly told investors the company’s new AI-1 battery hit 1,000 cycles — a major leap from the 800 cycles they had previously claimed. The company spoke of “commercial qualification” and “customer testing,” giving the impression that validation was nearly complete.
But in Q3, that story changed. Suddenly, the same company admitted the chemistry still hadn’t proven 1,000 cycles. Now the line is that they believe the newest samples will get there in Q4.
The Q2 call made it sound like Enovix was on the verge of delivering a market-ready, customer-qualified battery. The truth? They’re still chasing lab results, not delivering commercial reality.
Investors were sold a breakthrough that doesn’t exist. Every quarter brings a new qualifier — “we believe,” “we project,” “we’re validating.” Those aren’t achievements; they are predatory marketing.
On the 25Q3 conference call it was mentioned that the previous prototype that had been in testing – both at Enovix and at Honor – apparently didn’t manage to do 1000 charging cycles. In regards to the design change that led to restarting the validation process, the CEO said “Along the way, we noticed that the trend line is now such that to get past 1,000 cycles, we have to make a chemistry change, not a form factor change, not a scope change. I mean, we started validating that chemistry change, and we now have samples internally that we believe will go all 1,000 cycles.”
To me that sounds like success of the new validation is far from certain, which would mean that Honor doesn’t have a specific plan yet to launch a phone with Enovix batteries. The idea that Honor would have had a complete supply chain, production capacity and marketing plan in place to launch a new phone model this year and now has everybody waiting for Enovix to get its batteries to work, is simply absurd.
Back in July when Enovix issued a warrant dividend (per the chairman in an effort to trigger a short squeeze), it also announced the launch of a new AI-1 platform. There has never been a full explanation about what was different about AI-1, compared to prior iterations of battery prototypes, but in the announcement of the AI-1 platform Enovix still used the term “100% active silicon anodes”. That term refers to the use of silicon oxide and is meant to distinguish it from the use of silicon carbon where silicon isn’t 100% of the active material. Does that mean that the decision to switch to silicon carbon was made at a later stage? And what batteries got tested then by Honor? It feels like Enovix has a lot of obvious questions yet to answer.
But the real question is whether, with all the changes we’re seeing, the value proposition is still the same as it was when the company became public. Bulls have been betting on a giant leap in battery performance but in the current confusion I’m not sure if that’s on the table anymore.
“And honestly, I’m happy I tried this experiment out. I would much rather try my hardest to be patient and give the company all my time and watch it fail, rather than having never tried to be a more patient investor.
I’m not bitter from this experiment. I could blame management for how they kept saying that they would have over $1 billion in revenues in 2026, and now I’m not sure they could even get to $100 million in revenues in 2026.
The Bottom Line
I’m closing this one with no regrets. Sometimes you have to take a swing and miss to remind yourself what real conviction feels like.
Enovix didn’t work out, but its capital is freed up, the lessons are learned, and the portfolio is cleaned up from this dragging position on my performance. Let’s go!
People keep saying Enovix’s issue is “communication.” No, the issue is they know their battery doesn’t work at scale, and the only move left is to stall and spin.
If they had a cell that passed OEM qualification, it’d be front-page news. Instead, it’s vague “sampling,” new buzzwords every quarter, and pivots to smaller markets like VR/AR to buy time. The 3rd-party IR firm can’t fix that it’s lipstick on a corpse.
At this point, management’s strategy is survival: keep the story alive long enough to raise cash and hope they can invent something that finally works. Until then, it’s not poor comms , it’s deliberate misdirection.
They’re not just quiet. They’re lying, omitting, and spinning to stay alive.
If the cells hadn’t failed, we’d see:
At least one Tier 1 design win announced after all those “samples.”
Real cycle-life or safety data in a 10-Q or tech brief.
Consistent guidance instead of a new “focus market” every six months.
The fact we’ve seen none of that tells you exactly where the problem is , in reliability, yield, and manufacturability. The architecture might look good in a lab cell, but scaling it up has clearly broken something they can’t fix yet.
Enovix’s repeated shipment of untested or inadequately validated cells demonstrates a consistent pattern of reckless corporate governance, materially exposing investors to execution and operational risk. Management has a documented history of authorizing products—such as the FAB1 line, which was deployed and installed prior to the completion of SAT (Site Acceptance Testing), and AI-1, which was shipped following assurances to investors that requisite testing had been completed, later shown to have been neglected. The company is now distributing another batch of revised, untested batteries to prospective customers. By sanctioning these practices, management may have materially exposed investors to foreseeable financial loss, potentially providing a basis for claims under theories of corporate malpractice, breach of fiduciary duty, or negligence in the oversight of operational processes
ObserverFXX
If achieving 100% silicon-anode batteries were easy, everyone would already be doing it. That’s why the market’s reaction felt disproportionate to what was actually a good—not perfect—earnings call. Enovix announced a major customer name, outlined a realistic path forward, and even hinted at a potential announcement coming at CES in January. You can call Raj a liar if you want, but doing so means accusing the entire company—and a highly respected board—of the same.
There is a clear path ahead. Delays happen constantly with novel, breakthrough technologies; look no further than Tesla, which rarely meets its initial timelines yet still delivers industry-changing products. This wasn’t some outrageous miss. Just as Enovix has slipped on certain deadlines, they’ve also met key ones. The execution isn’t perfect, but the trajectory remains intact.
randallthedane
Raj’s exact words from the Q3 2025 call are worth noting:
“We now have sampled the AI1 platform to 10 unique smartphone OEMs and ODMs, and we expect to showcase the first end product with an OEM publicly in CES 2026 in January.”
That’s not vague marketing language. You don’t announce an OEM end product showcase at CES unless the battery is already at a commercially viable stage and deep into final qualification.
So while skepticism is fair, this statement from Raj strongly suggests that testing is effectively wrapping up and that they’ll be ready to show real hardware alongside an OEM at CES. It’s one of the more concrete signals we’ve gotten.
randallthedane
LOTTOBBOTT
I am a Korean investor.
Two weeks ago, a Korean company named Enchem signed a 1,000-ton electrolyte supply deal with a “California-based battery firm with a factory in Malaysia.” (Sound familiar?) This is a FACT.
The report explicitly states that this electrolyte is a custom-made recipe tailored to the buyer’s specific requirements.
I’m betting my money that they passed the 1,000-cycle test. Unless the CEO is crazy, he wouldn’t buy 1,000 tons of a specialized, custom recipe without finalizing the chemistry.
The recipe is fixed. Production is coming. Good luck to all.
Bullish
Dec 15, 2025 2:18 PM
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ENVX
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Jaymuss
2:28 PM
@LOTTOBBOTT Absurd that the 1000 cycle test is completed. There’s no speeding it up… In the words of Scotty….””Captain I can’t change the laws of physics “” But otherwise if the electrolye order is true and not a sinful lie, that sounds very promising.
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LOTTOBBOTT
2:36 PM
@Jaymuss The source is a specialized Korean tech news report about a major contract secured by Enchem.
The buyer wasn’t explicitly named, but looking at the facts mentioned in the article, it is undeniably $ENVX.
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TropicalWhiplash
4:09 PM
@LOTTOBBOTT @Jaymuss The core info is true —the order is planned and the company is ENVX. The 1000 cycles? No info out there about it
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LOTTOBBOTT
4:32 PM
@TropicalWhiplash @Jaymuss
Even if we strip away the hype and view it conservatively, the conclusion is identical: The CEO is confident in Mass Production.
@Jaymuss
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acerspin
5:27 PM
@LOTTOBBOTT @TropicalWhiplash @Jaymuss Not to be soft bashing, but the CEO was confident of Fab1’s mass production in January 2023, too. I don’t think Raj sounded very confident on the firechat – he knows AI-1 missed its window of opportunity.
Seaweedme
5:29 PM
@LOTTOBBOTT “Enchem–Enovix agreement-
Separate industry commentary has highlighted an electrolyte supply arrangement between Enchem and Enovix, the U.S. silicon‑anode battery company. In that discussion, Enchem is said to be lined up to supply roughly 1,000 tons of electrolyte over three years, with an indicative contract value around 50 million dollars and deliveries starting in 2026 to support Enovix’s planned high‑volume production ramp.[x]
This Enovix‑related deal has been described via secondary reporting and investor commentary that cites Korean media rather than via a joint, formal press release, so it should be treated as indicative until confirmed in company filings or official announcements.” from Perplexity
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acerspin
5:21 PM
@LOTTOBBOTT Where is the press release or regulatory filing by Enchem about the 1,000-ton deal? Enovix has been buying electrolytes from Enchem and others for years – nothing to do with any 1,000 cycles. So, Enovix CEO did not buy 1,000 tons of anything. The little Korean pumpers and dumpers just wanted to prop Enchem’s stock a bit after the accounting disaster (apparently the CATL thing was not enough) … Enovix CEO knows that AI-1 is not going anywhere, and AI-2 is not finalized, so try again!
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WantedToRetireEarly
Follow
@InvestorWisdom at this point given the constant delays and broken promises, this company is a hold at best. Management does not deserve more investment from me and others until they actually deliver. And the big Chinese companies are fast catching up. They don’t have infinite amounts of time either. I am not expecting much from CES. I’m with @acerspin the future of their company depends on shipping the AI-2 and that probably won’t happen until 2027. That’s what I’ll be following closely. And the World Mobile Congress in March is where I hope to hear something. But not holding my breath given past execution delays.
Dec 12, 2025 7:53 PM
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InvestorWisdom
Dec 12, 2025 7:55 PM
@WantedToRetireEarly none of that matters when it comes to making money on catalysts. Those same complaints have been going on for years, but this company puts in multiple big moves each year regardless… maybe CES will amount to nothing, but I expect the stock to be higher before the show, providing a trading opportunity.
… but i’m often wrong 
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WantedToRetireEarly
Dec 12, 2025 8:01 PM
@InvestorWisdom we have all been wrong on this stock which I blame mostly on what management was signaling to investors. Still don’t know why they did that huge raise right after the special distribution. There was talk of some possible great deal and then nothing – except more dilution and delays.
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InvestorWisdom
Dec 12, 2025 8:02 PM
@WantedToRetireEarly and we don’t need a new battery (AI-2) to be in multiple AR glasses. There are benefits to AI-1 that no other battery can provide. Like heat, which is more noticeable when you’re wearing it on your head
It’s also a safer battery and I imagine these glasses can get crushed easier than a phone. The more energy you pack in it, the more dangerous it gets, unless you’re using Enovix 3D architecture 
Dec 12, 2025 8:02 PM
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WantedToRetireEarly
Dec 12, 2025 9:18 PM
@InvestorWisdom we all know their design and tech has tremendous potential. But can it realize that potential is the question. Remember the vast majority of tech startups fail for a reason. It’s almost always much harder than originally anticipated and takes more time and more money.
That has certainly been the case here. Not saying it will fail but as of yet there is also absolutely no guarantee it will succeed given the competition out there. Remains very high risk and very speculative. Invest accordingly.
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ointhebay
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$ENVX based on the fireside chat, the CES is just a demo with their batteries in some smartglasses, but they haven’t received any actual POs for those smartglasses. It’s all just a demo.
InvestorWisdom
9m
$ENVX notice how the PR says “initial” shipments by mid 2025… peeps forget that these batteries were MADE TO FIT in glasses, so they don’t need to be re-engineered like a phone battery…. Phone OEMs get a standard sample size. Then if they like it they have to rebuild the battery to the specific models specs + retest. This is what’s happening with Honor.
This glass battery is already sized and usable within the glasses… Once they proved it was safe to put on people’s heads, they’ve been able to test it in these glasses since July…. and If they’re happy with this initial battery, it’s ready to scale when ready….
Notice how it says “initial”…
InvestorWisdom
30m
$ENVX @ointhebay Relisten to the fireside chat (30:00 mark). He said he hopes that these CES demos go into full volume production…. It doesn’t matter if there’s no PO yet, it could come anytime…
However, if this is part of the “landmark purchase order” announced last January, which has been undergoing validation testing since July, they could already have the PO in hand, right? We don’t know the specifics of this NDA protected purchase order… and they might be timing a PR with the unveiling of the customer’s name at CES. That’s when they can FINALLY disclose and talk freely about them… it could dramatically change the dynamic with this stock= Validation from one of the most successful and intelligent companies on the planet.
If shorts aren’t nervous yet, they should be. lol… 2 screenshots of supporting DD…
Grimpler
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@ointhebay They would not demo it unless the intent was to use the batteries.
Dec 15, 2025 4:09 PM
Stingraystev
On Wednesday Raj announced that the India facility successfully obtained ISO 9001 certification, which means:
– Validation of robust quality processes in its R&D and prototyping operations
– Enhanced credibility with partners and OEMs including smartphone manufacturers
– Alignment with global standards, supporting faster innovation and potential future expansion into qualified production
– Boosted investor and customer confidence in Enovix’s operational maturity across its global footprint.
It will also help in leveraging India’s talent pool for high-quality R&D work.
Dec 16, 2025 3:25 PM
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acerspin
ISO means nothing – Fab1 had ISO 9001, but was malfunctioning so badly that no one was able to fix it. So, ISO was a waste of time – the India R&D team was doing great work, so let’s hope all this paperwork was’t a big distraction for them – they need to finish AI-2 on time.
Shim Seongah
01 Dec.2025 08:23(KST)
On December 1, Enchem announced that it plans to sign a supply contract for electrolytes with a California-based silicon battery manufacturer after more than five years of development. The contract covers the supply of 1,000 tons of electrolytes over three years, from 2026 to 2028. The electrolytes will be produced at Enchem’s Zhangjiagang plant in China and supplied to the customer’s factory in Penang, Malaysia.
Typically, applying just 25% silicon can significantly increase battery capacity. However, the technology to use 100% silicon is considered revolutionary, as it can achieve more than double the energy density compared to conventional batteries.
For this contract, Enchem developed an electrolyte composition that operates stably with a 100% silicon anode and in high-voltage cells of 4.5 volts (V) or higher. While conventional batteries operate at 4.1 to 4.4V, high-voltage technology above 4.5V is rapidly expanding to improve capacity. At higher voltages, electrolyte decomposition occurs more easily, making special solvents and protective film-forming additives essential to suppress this.
Research has continued to increase the proportion of silicon in the anode beyond the capacity limits of graphite, but typically only about 10% could be used stably. By combining with the customer’s innovative cell design, Enchem has implemented electrolyte additive technology that ensures stability even with a 100% silicon anode, thereby securing both reliability and performance.
The contract customer, established in California in 2007, is a lithium-ion battery specialist that manufactures high energy density batteries for IT devices such as smartphones, wearables, and AI glasses. The company leads the industry in advanced silicon anode battery technology and has demonstrated exceptional innovation and competitiveness in targeting specific IT markets, including being the first in the industry to successfully mass-produce 100% silicon anode batteries.
An Enchem representative stated, “With this supply contract, we will strengthen our research personnel for high-performance electrolytes that combine high energy density, fast charging, and safety,” adding, “We will continue to enhance Enchem’s technological competitiveness by expanding the application of our products to a wider range of areas beyond electric vehicles.”
acerspin
Honor has nothing to do with it and an electrolyte deal would not merit an NDA.
Enchem is just a big electrolyte supplier that has faced some business and reporting setbacks recently in the USA. A 1,000-ton binding contract over 3 years with Enovix, even if existed, is just too tiny for Enchem…
Korean pump-and-dump artists fail to realize that AI-2 for phones uses silicon carbon chemistry, the same that ATL has been using since late 2022 for volume shipments, so nothing new had to be invented by any electrolyte supplier… Enovix has been buying and will continue to buy electrolytes from various suppliers, including Enchem. Funny thing, it is exporting the spent Enchem canisters back to South Korea – good for the environment!
I do expect that once AI-2 is finalized and qualified, Enovix will enter in proper supply contracts.
Dec 15, 2025 5:51 PM
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Keaper2014
so ATL has a 100% silicon anode? ATL uses a SiC blended with graphite if I’m not mistaken. Clearly it’s not the same. Raj already said they had a company manufacture their patented electrolytes and the article strongly suggests it’s Enchem. Is it for Honor? Assuming AI-1 passes qualifications and they do the expected limited production run to collect Charge/discharge curves — how the pack behaves under real‑world loads vs. lab curves ; Thermal behavior — heat rise during fast charge, gaming, camera use, RF spikes
Voltage sag under peak load — critical for camera bursts, 5G uplink, gaming
Internal resistance drift — early indicator of cycle‑life trajectory
SOC/SOH estimation accuracy — whether the BMS model matches real behavior, then I expect it will be for Honor and possibly others.
Dec 15, 2025 7:10 PM
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acerspin
Of course ATL has a 100% active (note the active!) silicon anode – graphite is not the only form of carbon. Enovix does not have a 100% silicon anode, although Raj seems confused on that point from time to time (listen to fireside chat again!). Group14 and Sionic wrote a paper just for Keaper, who believes every link he reads:
https://group14.technology/resources/press-releases/sionic-energy-uses-scc55-for-100-silicon-battery/
To summarize, ATL does up to 25% silicon in the anode in volume, according to Honor, and has similar or better performance than Enovix 100% active silicon using the same fundamental silicon carbon chemistry.
Enovix buys standard electrolytes from several suppliers all over the world, not just Enchem. I would like to single out the US-based Elementium, which is near and dear to my heart. However, I admit I have no idea why Enovix needs all those electrolytes for the few samples it ships.
AI-1 is no longer ahead in terms of performance, and has no hope of catching up on costs. AI-2 is a different story.
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Keaper2014
Thank you for pointing out my error in omitting the word “active” from my statement. Yes, when you are making sometimes “wild statements”without any support and contrary to known facts, I like to see the evidence; Otherwise, that just makes you another FUD spewing basher that mixes a little bit of truth with a whole lot of spin. I’m still waiting for any evidence to support your claim that Raj is lying to us and cycle life testing will take 8 months. Your proof, an EU reg that says what specifications are required to be listed not the testing methods or time frames used to determine the specifications. So far, you haven’t provided independent tests to show ATL has any batteries that are equal to or better than what Polaris labs validated on AI-1. Do you have anything other than claims? I got things to do!
Dec 15, 2025 11:19 PM
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acerspin
Raj is not lying about the 8 months – he is being optimistic – optimistic that Honor will not honor the exclusivity with the competitor and will put a small PO for a cell that is not properly tested after the previous one failed qualifications.
We don’t need independent tests about ATL – we have the honor of Honor’s words and actions. Honor says 901 Wh/L in a press release, with over 3x fast charging (90% in 40 minutes, if I remember correctly), 1,200 cycles, for an extra-thin the cell in a flagship that Enovix has no chance of matching with the constraint-architecture. The only way to gain Honor’s business in 2027 is to release AI-2 on time.
Polaris has not validated anything. If it did, you would have had a PO by Honor or the the other OEMs already. Remember, Polaris also validated EX1, just before Enovix discontinued it due to lack of demand. You should ask a bit around about Polaris – they managed to cheat even Elon Musk…
Dec 16, 2025 12:19 AM
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Keaper2014
I almost don’t know where to begin. 1. Raj said 3-4 months you stated 8. 2 You claim ATL has an exclusivity agreement with Honor but provide no evidence of that (I think that would have been big news for ATL, but nothing?) 3 You claim Polaris never validated anything; except of course that the “AI-1 smartphone battery was validated by Polaris Battery Labs as the highest energy density cell ever reported for a smartphone.”
https://finviz.com/news/159283/enovix-corporation-envxs-lithium-batteries-touted-for-higher-energy-density-in-smartphones
Then you try and deflect about some barb on Polaris. And you claim that Polaris also evaluated Ex1M but there’s zero press releases or evidence I can locate to support that. There’s more too but I don’t have time now!
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acerspin
The exclusivity with ATL was done in late 2022, and the big news was Honor’s flagship unveil in March 2023 with a revolutionary battery – Honor presented it as its own, which was not entirely unfair, given its silicon carbon patent and joint development with ATL. Investors learned about it from ATL in November 2023.
Enovix paying Polaris to say false things that contradicted what Honor was saying at the same time doesn’t look good for Enovix relationship with Honor, does it? Let’s just hope that AI-2 will be launched on time – then the past won’t matter…
Polaris did not evaluate EX1M – it did EX1, after previously cheating Mr. Musk:
https://www.globenewswire.com/news-release/2023/11/07/2775546/0/en/Enovix-Batteries-Demonstrate-Highest-Energy-Density-Among-Cells-Evaluated-According-to-Polaris-Battery-Labs.html
I pity Raj and TJ that they have to deal with aggressively ignorant investors…
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Keaper2014
I pity you for thinking actual investors are buying the FUD you are constantly sowing. Making claims that collapse under their own weight and that you can’t support. You hurl your “ignorant investor” at me for asking for proof while ignoring some of the absolutely ignorant unsupported assertions you make or proof you offer that is literally the opposite of proof. Most people have already blocked you because they see you for what you are, lol. It really bothers you when I ask you to support some wild ass claim you make. Thats not confidence, that cowardice! And it’s obvious! I hope you don’t think it’s over!
Dec 16, 2025 5:15 AM
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acerspin
I know I promised not to post much after my travel ended in October, but this is too good to pass. Next time a crazy short tells you that Enovix has never sold a silicon battery, you should point them to this publicly-available proof of sale of 34 eyewear cells EX1M-601241 to $SNAP shipped in February out of Malaysia. The price was $9.8 per cell, a reasonable retail price for batteries of that size (on ebay 601240 cells go for $2 + shipping in that volume). As some of you may remember, $SNAP was an early investor in Enovix and had exclusivity until last year. Snap is an exhibitor at CES, so you could visit and ask them about whether the Enovix cells passed all the tests (not for the showcased product mentioned by Raj, but still useful to get feedback)
https://www.volza.com/company-profile/exports/import-bill-of-lading-56355-0-23818573/
Enovix also shipped about 300 of these cells to Routejade for packaging and 5 cells directly to Japan – it is not clear who those end customers are.
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Raj is so sneaky. Remember when he was asked about AI-1 and he said its performance is somewhere between EX1M and EX2M? I was quite puzzled by that, as EX1M is a silicon suboxide node, while EX2M is the superior, silicon carbon, node, so you can’t really mix and match, assuming both had optimized chemistries.
Turns out AI-1 is indeed just a “marketing” platform – the phone battery samples (two different sizes) are on the latest and greatest EX2M node, while the AI-1 smart glass batteries are on the good old EX1M node – I guess Enovix made too many of those, and customers are ok with putting them in reference designs and prototypes (glasses are likely to break before the 800 cycles are reached – ha!). These two form factors are the only one shipping right now.
AI-2 will be different, of course – game changing for all form factors. Hoping for some hints from the investor events this week.
Dec 10, 2025 2:30 PM
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acerspin
Raj says he plans to promote KOKAM and Routejade’s power cells which have not been updated since 2015 and haven’t been competitive for years, but never mentioned AI-2. 7% doping is not going to help, when the Chinese are churning millions of silicon carbon power cells already and Amprius, pretending to be an American company, is reselling some of those as SiCore to NATO contractors.
So, this call got me concerned. I understand keeping a secret to make the biggest bang for the buck, but he could have mentioned AI-2 at least once. I was getting really good vibes about it from the team working on it during the Summer – oh, well.
Dec 11, 2025 3:34 AM
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Eatons
Dec 11, 2025 4:15 AM
@acerspin why would he randomly bring up AI-2 when the analyst never once asked about anything tangential to it. And why are you so concerned? They have an entire R&D center in India to develop future generations of batteries and you’re “concerned” that they aren’t working on it because he didn’t randomly bring up AI-2 in an interview with an analyst who didn’t ask about it?
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acerspin
Dec 11, 2025 5:10 AM
@Eatons Because AI-2, a game changer, is the only way to win the smartphone business – the competitor silicon carbon cells have caught up with AI-1 and are cheaper to make. Honor has been on the forefront of silicon carbon, and has been using ATL’s cells since early 2023 – it is not waiting for Enovix to get their act together. AI-1 for phones is a rebranded EX2M, based on the samples shipped, so it has been “available” for more than a year, and clearly Honor does not like it enough to put it in a phone.
Raj should have talked about AI-2 instead of promoting the old Korean SLPB cells that go from 400 Wh/L to 450 Wh/L, at best, when doped and can’t compete with Amprius SiCore and similar Chinese and Korean silicon carbon power cells. Those guys don’t do consumer electronics, because they are afraid of ATL, but they own the premium drone space.
If AI-2 is not launched in early March, then Enovix will not have profitable volume production even in 2027.
acerspin
When Honor releases Honor Power 2 in February 2026 with a 10,080 mAh “giant capacity battery” and 80W fast charging, our friend @Keaper2014 is going to go ballistic, because he is still waiting for links confirming Honor’s exclusivity with ATL…
Here is the link in case he missed it:
数码闲聊站
25-12-16 04:12
发布于 北京
独家信息，6.79″2640*1200p 1.5K LTPS直屏，天玑8500处理器，10080mAh±巨容量电池，80W快充，前置16Mp，后置50Mp，代号Saber，雪原白/幻夜黑/旭日橙，续航估计要刷记录的中端机，暂定也是春节前登场。
I am tired of repeating the obvious. AI-1 missed its chance. Yes, there will be some sales of AI-1, but at negative gross margins.
I blame it mostly on the delays in KOSES equipment deliveries, for which Raj is not to blame, as KOSES was initially approved by TJ. But Raj also wasted time on marketing instead of focusing on the product and its qualifications. Let’s hope Raj listens to reason and launches AI-2 in March, or 2026 will be very painful.
Dec 16, 2025 6:19 PM
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Keaper2014
Yesterday 9:35 PM
@acerspin Really!? So I’m “going to go ballistic” because I asked you to back up claims that should be effortless to prove if they were real. Nobody with basic critical thinking accepts statements like “there’s an exclusivity agreement” with no contract or source, or “AI‑1 already failed” while Honor is still running electrolyte tweaks, or “the lab’s results don’t count” with zero evidence. Would you accept someone saying their car gets 200 mpg or their phone battery lasts a week without a single document or test? Of course not. Yet every time I ask for something simple — a press release, a spec sheet, a lab report — you don’t provide it. You pivot, you attack, and you hope nobody notices the missing proof. I’m not “going ballistic.” I’m doing what any rational person does when someone makes big claims with no receipts. 🥱
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acerspin
Yesterday 9:53 PM
@Keaper2014 Honor is not running electrolyte tweaks – it did many years ago when it was part of Huawei and when it was working on figuring out silicon carbon with ATL. You should accept the reality.
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Keaper2014
Yesterday 10:24 PM
@acerspin You jumped on a tiny wording slip and pretended it erased the actual point. Honor is qualifying AI‑1, and Enovix said the electrolyte tweaks were done because Honor asked for them. That’s current. That’s documented. If I wanted to nitpick every error you’ve made, I’d be here all day chasing side‑issues instead of addressing the underlying problem: whenever evidence is needed, you dodge, reframe, or attack instead of backing up your claims. At some point, that pattern speaks for itself, and credibility goes with it.
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acerspin
12:41 AM
@Keaper2014 Oppo was sampling, and presumably qualifying, Enovix phone cells with a 500-cycle life in 2021, according to TJ. How did that turn out? Same with Honor and AI-1.
Honor does not care about electrolytes – although it can certainly teach Enovix some tricks about them from 6 years ago. Honor cares about cells performing within specs, and will continue to buy them from a single source until exclusivity expires or maybe even beyond, if ATL wants to sacrifice its fat margins (because now it has at least 3 credible Chinese competitors). It all depends on whether AI-2 is launched on time. If it is, then we will almost certainly see large, profitable orders by mid 2027. If it isn’t, we will have to pray that Sunwoda and all the rest screw up silicon solid state badly.
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Novo1
Yesterday 7:40 PM
@acerspin @Keaper2014 excellent post! But, Talluri is not the right person! He doesn’t understand marketing and product development go hand-in-hand. It’s a symbiotic relationship.
WantedToRetireEarly
Follow
$ENVX Chinese competition is catching up. As @acerspin has mentioned, its clear that the future success of ENVX really does come down to the AI-2 as the AI-1 does not stand out from what some Chinese phone makers are already shipping. It’s a shame that the numerous delays over the past few years have allowed the competition to catch up.
https://www.cnet.com/tech/mobile/the-oneplus-15-is-the-latest-spark-in-a-battery-revolution-coming-to-phones/
Exclusive: The OnePlus 15 has the largest battery capacity of any phone sold in the US. And it’s all because of silicon.
The OnePlus 15 Is the Latest Spark in a Battery Revolution Coming to Phones
https://www.cnet.com
Dec 10, 2025 7:56 PM
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Stutwit
Dec 10, 2025 8:14 PM
@WantedToRetireEarly @acerspin They are not catching up, or at least this one isn’t. They get that capacity because the battery is farking huge. In terms of energy density it’s nowhere close.
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Plus
wilberg
Dec 11, 2025 1:23 AM
@WantedToRetireEarly @acerspin there will be many winners
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drankstocks
Dec 10, 2025 8:06 PM
@WantedToRetireEarly @acerspin guess we are not retiring early!
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Jaymuss
Dec 10, 2025 8:18 PM
@WantedToRetireEarly @acerspin At a rating of 7350 mAh seems the AI-1, from your article would pretty much be tied for the lead….I would hope that our patented over heat technology would make the AI-1 a stand out.
Stingraystev
I’m hearing a lot of people talking about how the competition is catching up and what not. What a lot of those people don’t understand is that this market; not one, nor two, nor three suppliers can supply the industry. Just because one is ahead of the other does not mean they will win the entire market share of the industry. I’m noticing a lot of retail “Longs” caving in, and that’s ok, because that’s exactly what Wall Street wants. Just sell and save us the headache of your whining and crying.
We are close.
Bullish
Dec 20, 2025 7:57 PM
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InvestorWisdom
Yesterday 8:47 PM
@Stingraystev when people mention that, they’re only talking about the phone segment. This battery is likely the best for glasses and will be for a long time… it has characteristics which are beneficial when you have a device touching the side of your head, like being safer + cooler. This is important when you’re running AI which requires rapid/powerful energy bursts 
I believe these aspects are going to start getting discussed more after CES. Good odds its in the product marketing… fyi Raj has mentioned these benefits in the earnings calls, based on feedback from the customers.
… and Raj has made the same claim about EV charging. Heat is a major issue if you want to charge a large battery faster
imo these glasses are limited on how much further they can improve the battery using jelly roll architecture. AI-1 could dominate this rapidly growing segment.
another aspect is that these phone battery manufacturers don’t have the capacity (or desire) to make batteries for the majority of segments. This is why most products still use older batteries which are years behind the phone segment. AI-1 has lots of potential to grow within many different segments, they’re just choosing to go after the most difficult/lucrative segment first
Look at these other battery small caps. None of them are pursuing phones (too hard) and they’re worth billions. We don’t need phones to grow, although it would be significant… and most if not all of these battery stocks aren’t coming up with anything dramatically new. They’re just adding more capacity into growing markets for batteries.
In California they are banning gas leaf blowers, lawn mowers etc. The current batteries don’t last long enough for a gardener to work all day. They have to buy a lot of batteries and make sure to charge each night, otherwise they are waiting around and losing money. Enovix could dramatically improve these tools and people would pay more imo. Time is money
AI is impacting everything. Manufacturers are racing to figure out how it can help them gain an edge over their competition… but for them to do so they’re gonna need better batteries.
We focus on phones, glasses etc that use AI, but there is so much more coming… and I don’t think it would be wise for a new product to market dramatically weaker battery life than the model the customer is currently using. Imo they will eventually need to upgrade the battery, even if they have to pay more for it, before their competitor does…
The AI race is heating up in many segments …
Dec 20, 2025 9:37 PM
There are a million+ retailers in the US alone and many of them use several scanners per location. A Walmart location easily has a dozen+.
If AI influences an upgrade cycle for many of these retailers it could be a very lucrative segment for Enovix to be involved in… and Raj mentioned a potential replacement battery that can go into older scanners
… and these batteries likely cost more per unit than phones
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acerspin
@Stingraystev Well, ATL, Sunwoda, and at least two other Chinese do supply the consumer electronics industry perfectly fine, and they all have perfectly good silicon carbon cells with 900+ Wh/L density and 1,000+ cycle life. ATL itself has 60%+ market share in consumer electronics cells with formidable operating margins and technical superiority. So, please do not spread misinformation! Being bullish is one thing, buy trying to mislead is quite another. I am telling you that serious investors are really put off by the clueless comments written here…
AI-1 is finished. As it was explained to you already, Enovix will probably get some orders, but at negative gross margins. Our only hope is that AI-2 will be launched in March – if that doesn’t happen, both 2026 and 2027 will be lost.
Also, don’t put your hopes on the AI-1 eyewear cells! Raj did not tell you that they are actually obsolete EX1M – which is good, as the focus should be on phones. I mean, $SNAP , an investor in Enovix, has been “validating” EX1 and EX1M for nearly 5 years and never put them in a consumer product.
Dec 20, 2025 11:31 PM
The Pentagon and AI giants have a weakness. Both need China’s batteries, badly.
Electrical infrastructure for servers at Meta’s data center in Eagle Mountain, Utah. Data centers can use as much electricity as a small city, straining local power grids.
Electrical infrastructure for servers at Meta’s data center in Eagle Mountain, Utah. Data centers can use as much electricity as a small city, straining local power grids. | CHRISTIE HEMM KLOK / THE NEW YORK TIMES
By Hiroko Tabuchi, Brad Plumer and Harry Stevens
THE NEW YORK TIMES
SHARE/SAVE
Dec 24, 2025
Listen to this article
13 min
In northern Virginia’s Data Center Alley, windowless buildings the size of aircraft hangars are powering the United States’ artificial intelligence industry, which is locked in a race against China.
Yet, these data centers are increasingly reliant on China, the U.S.’s geopolitical rival, for a vital technology: batteries.
These facilities can use as much electricity as a small city, straining local power grids. Even flickers can have cascading effects, corrupting sensitive AI computer coding.
To cope, tech giants are looking to buy billions of dollars of large lithium-ion batteries, a field in which “China is leading in almost every industrial component,” said Dan Wang, an expert on China’s technology sector at Stanford University’s Hoover Institution. “They’re ahead, both technologically and in terms of scale.”
A short drive from the data centers, at the Pentagon, military officials are sounding similar warnings, for different reasons. Military strategists, watching as modern warfare is reinvented in Ukraine, say the armed forces will need millions of batteries to power drones, lasers and countless other weapons of the future.
Many of those batteries, too, come from China.
Chinese battery dominance has long been a problem for industries such as auto manufacturing, but now is increasingly being viewed as a national security threat. Currently, U.S. military forces rely on Chinese supply chains for some 6,000 individual battery components across weapons programs, according to Govini, a defense analytics firm.
“The reality is very stark,” Tara Murphy Dougherty, Govini’s CEO, told a recent gathering of top defense and industry officials in California. “There are foreign parts in 100% of our weapon systems and military platforms.”
An aerial view of the Pentagon. As warfare is reinvented in Ukraine, and Silicon Valley races to maintain its lead in artificial intelligence, China’s dominance in battery manufacturing is raising alarms far beyond the auto industry.
An aerial view of the Pentagon. As warfare is reinvented in Ukraine, and Silicon Valley races to maintain its lead in artificial intelligence, China’s dominance in battery manufacturing is raising alarms far beyond the auto industry. | KENNY HOLSTON / THE NEW YORK TIMES
China understands the importance of these batteries. On Oct. 9, amid growing trade disputes, China threatened to limit exports of some of its most advanced lithium-ion technologies, including fundamental components including graphite anodes and cathodes.
The administration of U.S. President Donald Trump is facing a dilemma.
When Trump came to office, his administration initially froze billions of dollars in federal grants approved by that of his predecessor, Joe Biden, for battery manufacturing, lumping batteries in with electric vehicles, solar farms, wind turbines and other clean energy technologies the new president had sought to de-emphasize. He has been scornful of electric cars, calling them a “scam.”
Yet more recently, the administration has come to see battery technology as pivotal for many of the things it cares most about, including AI and defense. In interviews, more than a dozen battery-industry executives, lobbyists, military experts and others close to the administration said the White House had taken a growing interest in fostering a domestic battery industry disentangled from China.
In recent weeks the White House has held high-level meetings on the battery supply chain, according to three people familiar with the matter. The National Energy Dominance Council, which Trump established to coordinate energy policy, has been meeting with battery companies. The Energy Department has quietly allowed many Biden-era grants for battery makers to proceed. It also recently announced up to $500 million for battery materials and recycling projects.
The administration has started investing in companies that develop battery components or critical minerals, including Eos, a next-generation battery company. As part of a trade deal, officials prodded Japan to promise to invest billions of dollars in U.S. battery manufacturing. And the National Defense Authorization Act, passed this month, includes Pentagon restrictions on battery purchases from “foreign entities of concern,” primarily China.
The administration is saying “we don’t like electric vehicles, but we do need batteries for drones and data centers and AI,” said Samm Gillard, executive director and co-founder of the Battery Advocacy for Technology Transformation Coalition, a trade group. “They’re recognizing that China’s stranglehold on the battery supply chain is undermining our national security.”
Taylor Rogers, a White House spokesperson, said Trump was “deploying all aspects of the government to work closely together” to “ensure the U.S. is the global leader in critical mineral and battery production.”
Tools such as night vision goggles rely on batteries to the extent that the average soldier carries as much as 11 kilograms of batteries on a standard patrol.
Tools such as night vision goggles rely on batteries to the extent that the average soldier carries as much as 11 kilograms of batteries on a standard patrol. | KENNY HOLSTON / THE NEW YORK TIMES
Experts say that building an industry not dependent on China will be enormously difficult. China is dominant in lithium iron phosphate batteries, or LFP, preferred for both EVs and for stationary storage.
In 2024, China made 99% of the world’s LFP cells and more than 90% of the main components, according to the International Energy Agency (IEA). That dominance extends to the refining of raw materials including lithium and graphite, as well as to fundamental components such as cathodes and anodes that drive the movement of electrons within batteries.
The United States has its own lithium deposits and battery startups. But experts say it may take a coordinated effort and government support to compete against heavily subsidized Chinese competitors. Refining critical minerals can also be a hazardous process, and U.S. environmental standards could make the process much more expensive than in China.
Analysts estimate it would take at least half a decade for U.S. manufacturers to produce enough LFP cells to meet domestic demand, and much longer to create supply chains for underlying components.
Fatih Birol, the IEA’s executive director, likened the world’s reliance on China to Europe’s dependence on Russian natural gas. After Russia attacked Ukraine, there were concerns that Moscow would cut supply.
“Reliance for a strategic commodity or a technology on one single country, one single trade route,” Birol said, “is always risky.”
The dilemma represents a shift in the AI race, which increasingly hinges on a nation’s electrical infrastructure — its ability to reliably deliver vast amounts of electricity to power-hungry data centers — as much as on computing chips.
“Electricity is not simply a utility,” AI giant OpenAI said in an October letter. “It’s a strategic asset that will secure our leadership on the most consequential technology since electricity itself.”
A Ukrainian soldier practices operating a battery-powered drone in the Sumy region. Among the lessons from the war in Ukraine is a daunting realization: The future of military power rests with batteries.
A Ukrainian soldier practices operating a battery-powered drone in the Sumy region. Among the lessons from the war in Ukraine is a daunting realization: The future of military power rests with batteries. | BRENDAN HOFFMAN / THE NEW YORK TIMES
Battery dominance is a big part of China’s growing lead in power generation overall, including renewable energy. China has long seen batteries as an industrial and military priority, according to Wang, the Hoover Institution expert.
AI experts say U.S. companies still lead in computing capacity. Yet there is a rising concern that China’s advantage in energy infrastructure could help the country pass the United States.
“I’ve called AI ‘Manhattan Project 2,’” Energy Secretary Chris Wright said in September, referring to America’s effort in the 1940s to make nuclear weapons. If “China got meaningfully ahead of us in AI, we’d become the secondary nation of the planet,” he added.
Why data centers want batteries
The engineers who keep data centers humming refer to the “five nines” of reliability. That is, they strive to keep the facilities online 99.999% of the time.
Doing so demands reliable power. Tech giants have been scrambling for energy from natural gas or existing nuclear plants, which can run at all hours, and are making bets on nascent technologies such as smaller reactors or advanced geothermal plants.
“It’s get what you can get,” said Justin Gruetzner, an executive with Burns & McDonnell, a data center engineering firm.
Batteries are increasingly critical: Most data centers rely on them for backup. Batteries can provide instantaneous power in an outage while generators fueled by natural gas or diesel fire up, helping ensure that data isn’t lost.
AI has particularly immense energy needs. An AI query can require about 10 times the electricity of traditional internet searches, the Electric Power Research Institute estimates. And the vast computing power can cause significant fluctuations in energy demand.
Power “can fluctuate dramatically multiple times a minute,” said Chris Brown, chief technical officer at the Uptime Institute, a data center advisory body. At scale, these swings can amount to tens or hundreds of megawatts and even damage power grid infrastructure, Microsoft researchers have warned.
Even minor disruptions can lead to what’s known as “silent data corruption,” an emerging concern where AI hardware produces calculation errors. During one experiment, “a silent data corruption error actually broke the model,” said Jeffrey J. Ma, lead author of a paper on the phenomenon.
The lithium-ion batteries that China dominates are becoming increasingly prevalent. In February, Google said that it had installed more than 100 million cells across its data centers and had started to replace diesel generators with batteries. Microsoft said it aimed for its data centers to eliminate diesel fuel for backup by 2030 to meet environmental goals.
Batteries and the realities of war
Among the lessons from the horrors of Ukraine is a daunting realization: The future of military power rests with batteries.
Many battlefield drones are powered with lithium batteries that rely on materials and technology from China. Within Ukraine, Chinese export controls have slowed production and tripled the prices for some components, according to defense analysts.
“Every Chinese export restriction since 2022 has reverberated directly onto the battlefield,” said Catarina Buchatskiy, a defense expert at the Snake Island Institute, which focuses on military technology. The U.S. could soon face the problem, she said, adding that the kinds of components Ukraine has struggled to secure “are embedded across Western defense programs.”
Lasers, hand-held radios, night vision goggles, satellites and drones use advanced batteries. The average soldier carries as much as 11 kilograms of batteries for a standard 72-hour patrol.
And the shift toward stealthier vehicles, unmanned systems, electronic warfare and constellations of small satellites has swelled demand, said Jeffrey Nadaner, who was deputy assistant defense secretary for industrial policy during the first Trump administration. Shoring up the U.S. battery industry, he said, merits an effort on par with “the Apollo space program.”
The Pentagon is paying attention. The 2025 National Defense Authorization Act mandated a new battery strategy, and in a white paper published this year, the Defense Logistics Agency said the department should treat battery technology as mission-critical.
Elaine Dezenski, an expert on geopolitical risk and supply-chain security at the Foundation for Defense of Democracies, said, “When we think about the future of manufacturing and defense, and how we should be protecting critical supply chains, the chips are the brain, and batteries are the heart.”
Battery companies go to Washington
In 2024, the startup Group14 Technologies won a $200 million Biden administration grant to build a factory in Moses Lake, Washington, to produce a substitute for graphite, a key material that today mostly comes from China. But after Trump took office, Group14’s grant got tied up in a broader effort by the administration to freeze clean energy funding.
After an extensive review, the Energy Department allowed many battery grants to move forward “because the administration recognized that this isn’t about left versus right or green versus not green,” Group14 CEO Rick Luebbe said.
Still, he said, the factories that Group14 is building will be able to displace only a fraction of Chinese materials. To compete with China’s industrial subsidies, Washington would need to do more. “I see more tolerance for battery projects. What I don’t see is investment,” he said.
Other battery companies have noticed the administration’s new receptiveness. “The Biden administration liked our sustainability story,” said Judy Brown, head of external affairs at South32, a company that has received federal support to develop an Arizona mine for manganese, a key battery material. “The Trump administration likes the national-security story.”
One question, experts say, is whether the United States can sustain a domestic industry, even as sales of electric vehicles slow, undermined by Trump’s policies.
Trump officials have “softened their tone on batteries,” said Noah Gordon, an expert on sustainability and geopolitics at the Carnegie Endowment for International Peace.
“But the policy is still incoherent” because of its hostility toward EVs, he said. “They’re trying to boost battery manufacturing while also undermining the biggest sources of demand.”
Stingraystev
I just listened to the fireside chat again, and I can honestly say I am more bullish than ever. I’m not sure why a lot of people were complaining, I’m assuming the only reason is because the delay which is due to the customer testing the sample.
A lot of retail, and most people in general nowadays are use to the immediate results/satisfaction. It is not going to work that way with this one. This is a high performance and high technology unit they are CREATING along with the machines they are using to create them. The first of its kind.
If you haven’t listened to the interview with Raj, or have the attention span of a goldfish. I HIGHLY recommend you listen. It’s much better than listening to the soft bashers like acer and others.
https://www.youtube.com/watch?v=AFanskKFamA
acerspin
To be competitive and command high gross margins, the phone AI-2 will have to have something like 1) 1,000+ Wh/L and 1,500 cycle life both measured at -0.2C discharge, 2) support of 100W fast charge, 3) a 5-year or longer calendar life supported by accelerated data, 4) lower cost of manufacturing than that of EX2M. There are considerable tradeoffs and flexibility around those requirements, but it should look something like that.
I also see a low chance of Honor ordering AI-1 now because Honor has accelerated its roadmap. if Enovix launches AI-2 on time, then I expect the first large order in March 2027.
The phone business offers high volumes and high margins for an independent cell maker, and should be the sole focus of Enovix at least until it reaches 50 million cells a year. By then, economies of scales will allow it to enter the other large segments profitably. AI-2 should be able to address all markets, but some like automotive have longer qualification cycles.
Jan 01, 2026 4:07 PM
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WantedToRetireEarly
It will be a miracle if this happens. What odds do you give ENVX at this point. 20%?
acerspin
The odds of AI-2 being released on time? I don’t know how to estimate them – the team sounded upbeat earlier, but Raj failed to mention it on the fireside chat and is still wasting time with CES instead of paying for exhibitor space at MWC… Maybe it will be a last moment thing – once the long-term cycle life data is in, they will have a large multi-dimensional matrix of tradeoffs to choose from, and the decision can be taken in a day.
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shopno
Appreciate the inputs. Same as you, I feel very low probability of AI-1 landing in Honor’s or any phone OEM battery in 2026. As the chemistry changes happen to AI-1 July samples, it becomes very unpredictable that the new samples will meet all specs of Honor, which would lead Honor further testing of AI-1 samples altogether.
On front of AI-2, I am very less confident ENVX can deliver a 1000+ Wh/L density with 1500 cycles, while AI-1 July samples failed mere 1000 cycles testing. A 50% jumps in cycles between AI-1 and AI-2 simply not realistic IMO.
The more the timeline pushed out for phone PO landing, the higher probability $ENVX getting kicked out phone batteries business. TAM shrinkage would collapse ENVX valuation.
randallthedane
$ENVX @acerspin any significant shift in your intel on this? OR are you still leaning towards this as what will be featured at CES? You sound like you know your stuff but respectfully, I’m genuinely perplexed if you are a true player in this space with actual quality intel or if it is all smoke and mirrors.
acerspin
Dec 01, 2025 3:43 PM
$ENVX Somebody who follows Google, mixed reality, and CES closer than I do told me that the end product most likely to be showcased with Enovix at CES is not a gadget, but a software system. The battery will be powering a gadget running that software, but that gadget will be just a reference design and not an actual end product that consumers can buy in a store next year. Anyone can confirm? I know this is very sneaky, but not unexpected from Raj.
Jan 03, 2026 5:15 PM
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acerspin
5:49 PM
@randallthedane Remember, initially we thought it would be some kind of powerbank connecting to a headset, but then my sources who know CES and AR/VR/MR/XR better than I do told me they expected a reference design for glasses showing Android XR as the end product. This has been reinforced by the type of AI-1 eyewear cells shipped last year – they are simply the old EX1Ms with the standard dimensions for wearable reference designs such as glasses, bluetooth headphones, etc … Enovix prioritized the phone AI-1, a rebranded EX2M, for phones rather than anything else last year and was mostly shipping to China …
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randallthedane
54m
@acerspin This is where I get hung up. Raj’s actual wording was that Enovix would showcase a finished end product with a partner at CES. That seems at least somewhat inconsistent with a pure reference design thesis. Are you drawing a distinction between a finished demonstration product versus a finished commercial product?
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acerspin
29m
@randallthedane Yup, Android XR is a finished end product – an operating systm. Raj never said that the end product to be showcased with Enovix battery at CES is a hardware device. The hardware device with an Enovix cell would be a reference design, not an end product, and can accept all kinds of cells of similar size.
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randallthedane
15m
@acerspin @quanahparker @GrizzlyBearTurd
I think this is where we’re talking past each other. Android XR may be a finished software product, but Raj’s comment was specifically about Enovix showcasing an end product using its battery with a partner at CES. To me that implies a battery enabled hardware implementation, not just an OS demo. Again, maybe this miscomm is due to our idea of marketing language being very much different. We will know soon enough…
2
GrizzlyBearTurd
4m
@randallthedane @acerspin @quanahparker that is exactly what Raj said in the Canaccord chat. That is why I don’t put too much faith in acer’s “sources.” In any case we will know the truth soon enough.
GrizzlyBearTurd
5:37 PM
@randallthedane @acerspin his rhetorical style reveals all you need to know. Speaks louder than the actual details he shares, which do attest to fluency with the material. Clearly a smoke and mirrors sheister.
TDMF123
Everything I’m reading says they will announce customer/partnership with either Honor or another OEM at CES.
Some are evening saying META but rumors are abound as you can imagine.
Any thoughts would be greatly appreciated.
Bullish
Jan 03, 2026 5:41 PM
acerspin
6:36 PM
@TDMF123 You are reading fiction. Enovix cannot announce anything at CES – it is not an exhibitor and it is against the CES rules for it to make any announcements there. Meta publicly stated that it is going to use metal can cells in its smartglasses in the foreseable future, and Enovix simply cannot make those. Enovix cells are in reference designs of Snap and Qualcomm/Google.
Edge
TDMF123
44m
@acerspin From what I gather they can still do PR just not a CES stage presentation, CES-branded product launch or booth reveal. Essentially they can announce before, during, or after CES week through standard corporate channels.
acerspin
38m
@TDMF123 Anyone can do a PR, but any mention of CES, especially a booth, will ban Enovix from CES for years, and Samira may be kicked out of the Consumer Technology Association Board of Industry Leaders.
Stingraystev
Is Enovix the “NVIDIA of Batteries”? The fear of bankruptcy is gone. $ENVX is now trading as a “De-Risked Manufacturer” heading into the biggest hardware ramp since Tesla’s Model S.
Here is a deep dive on the valuation, tech, and 2026 setup.The Catalyst: On-device AI (Apple Intelligence/Gemini) is creating a power crisis. ⚡️
AI spikes phone power usage by ~20%. Standard graphite batteries physically cannot hold enough charge without overheating. The industry needs a solution by 2026. The Solution: Enovix.
Their 100% silicon anode + 3D architecture offers ~30% more density than graphite.
Crucially, it’s the only high-silicon solution ready for mass production now. They solved the safety issues that held silicon back for a decade. The Shield. The bear case was “they will run out of cash.” That is over. As of Q3 2025, $ENVX has a ~$648 Million fortress balance sheet. They can run Fab-2 through 2027 without dilution. The death spiral risk is dead.
Jan 04, 2026 8:53 AM
The question shifted from “Can they build it?” to “Can they hit 90% yield?”
Fab-2 in Malaysia is live. The high-volume “Zone 4” lines are running. They are no longer a science experiment;they are a manufacturer entering the “J-Curve.” The Signal: Positive Gross Margins. 📈
Most hardware startups bleed cash for years. Enovix posted 21% Gross Margins (Non-GAAP) in Q3 2025 before massive volume hit.
This proves the unit economics actually work.
Buying hardware stocks after they prove positive margins but before revenue explodes captures the “Scale” phase. We saw this with enph in 2019 and tsla in 2013. $ENVX just flashed the same signal.
The Growth:
We are in the transition year ($30M ’25 rev). 2026 is the ramp (~$80M-$100M). 2027 is the explosion ($300M+). The growth curve is about to go vertical as multiple smartphone wins stack up.The Main Event: The EX-1M battery. 📱
They are in “Commercial Qualification” with a top-tier OEM for a 2026 launch.
The moment that customer name is revealed (likely at a launch event), the stock likely re-rates immediately. The Floor: Defense & IoT.
The US Army buys Enovix cells because BrakeFlow™ tech makes them non-flammable.
This provides high-margin, sticky revenue that de-risks the business while we wait for the smartphone explosion.Valuation:
P/E is irrelevant. This is a binary growth stock.
At ~$11.50, it trades at ~24x 2026 sales. Expensive? Maybe. But it’s only ~7x potential 2027 sales. You are paying for the future slope of the chart.
Hypothetical 2027 Price Targets ($350M Rev):
• 8x Sales (Fair Value) = ~$13.25 • 12x Sales (Hyper-Growth) = ~$20.00
At ~$11.50, the market is pricing in moderate success, but not a home run yet.
Risks remain for the Speculator:
Yield Ramp: If Fab-2 stalls at 60% yield, costs balloon.
Delays: If the lead OEM pushes launch to 2027, the stock takes a hit.
This is not a risk-free trade.
The Verdict:
Today at ~$8, $ENVX is a Speculative Buy.
The balance sheet is fixed. The factory is built. The margins are positive. The risk has shifted from “Financial” to “Operational.
The “Table Pounder” Zone:
Under $9 level, you are essentially buying the $648M cash pile + the patent portfolio for free. The growth option becomes zero cost.
Summary:
If AI phones need better batteries, $ENVX is the only pure-play bet. The $648M cash shield makes it safer than ever.
Disclaimer: Long $ENVX. Info only, NOT financial advice. Do your own DD.
InvestorWisdom
20260105 8:57 PM
If Enovix succeeds, other battery manufacturers are going to be crushed. No one else can use this 3-D architecture, it’s heavily patented. If this becomes the must have new battery competitors are gonna lose billions. Potentially bankrupt
These competitors can’t risk losing even a small percentage of their market. They’ve invested in significant scale… this is a BIG reason for competitors to hate Enovix
If ‘spin’ was JUST interested in the battery segment, he would be posting on these other battery stocks as well, sharing his industry knowledge, but he’s ONLY focused on ONE battery stock… and constantly trying to discredit EVERYTHING they do.
But ultimately it’s not up to ‘spin’. Success or failure is dependent on the company, which is why I put him on ignore. Nothing he says can change the outcome. I don’t need his ‘spin’ to make money here
As i often say: Trade the frequent large percentage swings until they get their shit together, then go long. Lots of $$$ to make here
Stingraystev
On August 27, 2025 Enovix released a PR saying that Polaris tested their batter and their average volumetric energy density was 919 Wh/L, which was among the highest ever reported for a smartphone battery.
Today, with the tweaks presumably made to meet Xiaomi Redmi Model: BM68 / Honor’s battery specificationshas confirmed their average volumetric energy density at 935 Wh/L, outperforming the leading smartphone battery tested by 12%.
Five months after the original testing was announced, ENVX has a clear lead with smartphone batteries in average volumetric energy density, and the lead should only widen with AI-2, AI-3, etc.
PO’s OTW.
The future is bright!
You Won’t Be Able to Escape Smart Glasses in 2026
Meta is betting big on AI eyewear, with production of its Ray-Ban collaboration expected to hit 10 million pairs annually by the end of the year. But will the tech-ified accessory ever actually be considered cool?
CES 2026 made one thing clear: smart glasses are no longer a niche experiment, they’re rapidly evolving into a mainstream category with serious innovation, big partnerships, and compelling use cases. From gaming-focused specs to next-gen waveguides, the show floor and private suites were buzzing with announcements that signal a transformative year ahead for augmented reality (AR) and extended reality (XR).
More brands are jumping in—thanks to a mature supply chain. The technology and supply chain have matured to the point where reference designs are readily available. This means companies can make minimal changes to existing designs and still deliver competitive products.
This evolution lowers the barrier to entry, accelerates innovation, and ensures consumers will have more options at different price points. It’s a sign that smart glasses are moving from early adopter tech to a broader consumer category.
While “AI” is the default answer to the question of smart glasses’ purpose, CES showcased a broader range of practical applications:
Payments on the go: Rokid demonstrated glasses capable of mobile payments, hinting at a future where wallets become obsolete.
Fitness integration: Brands like Amazfit and Meta displayed workout stats in real time, turning glasses into personal trainers.
Health tracking: Even Realities G2, announced before CES, now integrates health metrics via the R1 ring.
Smarter AI assistants: AI isn’t just answering questions anymore, it’s actively listening and interjecting with relevant information when needed.
20260120
Enovix announced a leadership transition in its operations organization, including the planned retirement of its Chief Operating Officer, as the company prepares to commence mass production. The transition reflects Enovix’s focus on proven, high-volume battery manufacturing leadership as it moves toward sustained production for smartphone, smart eyewear, and defense applications.
–Global Manufacturing Operations will be led by Senior Vice President Kihong Park, who has overseen Enovix’s Korea manufacturing operations since 2023. Kihong brings more than two decades of global battery manufacturing, quality, and operations leadership, with deep experience scaling lithium-ion battery production across Asia, Europe, and North America. Since joining Enovix, he and his organization have strengthened regional operations, integrated acquired manufacturing assets, and delivered consistent year-over-year growth across Enovix’s Korea battery business while improving operational rigor and yield performance. This performance supported approximately 38% revenue growth for the company overall in 2025, based on our preliminary unaudited financial results for 2025. He has also spent significant time over the past year working closely with teams in Penang, Malaysia to support operational readiness and scale-up activities. Kihong’s expanded role reflects Enovix’s commitment to proven battery manufacturing leadership as the company transitions to higher-volume production.
–Advanced Manufacturing Engineering (AME) responsible for the design, build, and support of the proprietary equipment used to manufacture Enovix batteries — will report directly to the Chief Executive Officer, reflecting the strategic importance of AME in driving manufacturability, throughput, and cost efficiency at scale. To lead AME into its next phase, Enovix has hired Ed Casey as Vice President, Operations. Ed brings decades of experience leading high-volume manufacturing and technology scale-ups across multinational environments, including Southeast Asia. His background includes senior leadership roles at Komag, Seagate, Western Digital, and most recently ams OSRAM, where he consistently delivered manufacturing efficiency, automation, and operational scale across complex production networks. Ed’s appointment adds seasoned, world-class manufacturing leadership as Enovix prepares to ramp multiple production lines.
–The AME organization will also be strengthened by the addition of Sanghyuck Park, who joins Enovix as Senior Director, Advanced Manufacturing Engineering. Sanghyuck brings over 30 years of experience from LG Electronics’ Production Technology Center and deep expertise in battery production equipment, global equipment standardization, and process optimization. An inventor with multiple international patents in battery manufacturing equipment, Sanghyuck has led large-scale equipment deployments across Korea, China, Poland, and the United States. His experience is expected to accelerate line deployment, standardization, and repeatability as Enovix transitions from qualification to sustained production ramp across multiple geographies.
“These leadership changes reflect the importance of combining all our battery manufacturing under one experienced leader,” Dr. Talluri added. “We are entering a pivotal year for Enovix. As we prepare to commence mass production of our silicon-anode batteries for smartphones, smart eyewear, and other IoT markets in Malaysia, we are aligning our leadership around proven high-volume battery expertise, disciplined execution, and rapid scale-up. With KH’s track record in Korea, Ed’s world-class manufacturing experience, and a strengthened AME team, we are excited about the momentum we are building and our ability to execute with speed, precision, and operational excellence.”
==========================
Stingraystev
New hire Ed Casey:
Operational Transition: Hired specifically to facilitate Enovix’s transition to mass production as the current COO prepares for retirement.
Casey has decades of experience leading HVM and tech scale-ups within complex multinational environments, specifically in Southeast Asia. His career includes senior leadership roles at several major technology and hardware firms:
ams OSRAM, VP Operations. Most recent role where he focused on manufacturing efficiency and operational scale
Western Digital: Senior Director, Plant Manager
Solopower: COO
Seagate: Executive Director, Substrate Development
Komag: COO and VP
Key Credentials & Expertise
Mass Production Scaling: Extensive background in driving manufacturability and throughput for high-volume production lines.
Proven track record in implementing automation across production networks to improve efficiency.
Regional Expertise: Significant experience managing large-scale manufacturing operations in Southeast Asia (covers Malaysia ofc).
Jan 20, 2026 10:16 PM
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Eatons
Yesterday 10:29 PM
@Stingraystev this is all just part of the elaborate coverup Raj and the board have engineered to fool us into thinking that the battery works and they’re going to manufacture it this year. Makes total sense. Because the alternative is that they aren’t lying, and who would believe that.
———-
tjc5152
Yesterday 10:42 PM
@Stingraystev doesn’t seem like someone who would join a scam 😂
ObserverFXX
Anyone with capital at risk should be asking why an executive hand‑picked by TJ Rodgers, whom Rodgers publicly said he once tried to recruit when he was at Cypress and who went on to serial promotions over 23 years at AMD is willing to leave money on the table before clearing meaningful commercial milestones. Rodgers said he tried to hire Marathe as a senior ops leader at Cypress, but AMD “won that battle” and kept him rising through operations roles for over two decades. Senior operators don’t walk away before PO, revenue, or customer‑qualification inflection points unless their internal view of those milestones has shifted. Exiting before those validations suggests timelines are slipping or the probability of hitting them has been re‑rated lower which for a pre‑revenue story stock is a BRIGHT NEON WARNING sign.⚠️⚠️⚠️
Jan 20, 2026 8:05 PM
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Stingraystev
Steve Crawford
AJay 2 years ago he will give it his all and when the line is ready he will retire. He worked close to 20 hours a day, but of course shorts will make up stories, but building a company people excel at different phases of growth. This was a planned retirement and the candle is lit.
Sustained production ramp across multiple geographies otw!
————-
UrQuattro
Yesterday 9:11 PM
@Stingraystev @ObserverFXX where did he specifically say that he would retire?
Stingraystev
@UrQuattro @ObserverFXX I remember hearing it somewhere a while back.
He’s also 64 years old has 919,000 shares of Enovix plus options. He’s worked a long career at high level positions at AMD , Solaria, Lumileds, Western digital, and Enovix. Time for him to enjoy his life and his family.
————–
ObserverFXX
The Reality Behind the “Testing” Game : When Companies Play the Long Con
In the world of product development and manufacturing, there’s a well-worn strategy that companies often fall back on when things aren’t going according to plan: the testing phase. This might sound like standard procedure, but sometimes, it’s less about finding solutions and more about buying time, especially when things aren’t looking good.
When ENVX failed initial sample testing with Honor, only to “tweak” it and send it back for another round of tests. Raj assured everyone that if this second round didn’t work, they had backups for the backups. But here’s the catch: what if they know it won’t work at all? (ie Ajay leaving)
Let’s be honest, if they know the product isn’t feasible to manufacture or the solution isn’t going to come through, why not just send all the backups from the start? Why stretch out the testing process as if there’s some secret fix on the way?
The truth is, this so-called “testing” might just be a convenient way to keep up appearances and avoid showing cracks in the foundation, especially in front of investors.
After all, investors want to see progress. They want to believe that things are still moving forward, that challenges are being tackled head-on, and that solutions are just around the corner. In reality, these rounds of testing could just be a way to buy time, time to find a real solution, rework the entire product, or, in some cases, reframe the problem to minimize damage.
It’s easy to see why companies do this. Product failure can be a massive blow to a brand, both financially and in terms of public perception. Instead of admitting that the product or the process simply isn’t viable, dragging out the testing phase buys crucial time to rework the narrative and keep investors at bay. The problem is that it’s a risky game; eventually, people start to see through the act if nothing changes.
Jan 27, 2026 2:51 AM
tjc5152
the longer I think about it the more bullish I feel about the new hires. These guys wouldn’t join a sinking ship… and they wouldn’t be hired just to continue to scam just not practical in any way.
https://readon.substack.com/p/your-phone-is-getting-old-what-comes?utm_campaign=post-expanded-share&utm_medium=web&triedRedirect=true
The smartphone isn’t dying tomorrow, or anytime really soon. But its best days are behind it. The upgrade cycle is slowing. The excitement is fading. And a generation of consumers is growing screen-fatigued.
What comes next probably isn’t a single device. It’s a mesh of small, smart, AI-powered wearables like glasses, earbuds, pins that make interacting with the digital world more natural and less obtrusive.
For now, keep your eyes on smart glasses shipments and AI wearable launches. They’re small numbers today. But if any of these bets hit, they’ll reshape personal computing the way the iPhone did in 2007.
Blackrock 20260212, 13F, 14,050,050 shares
Stingraystev
935 WH/L Smartphone batteries will be revolutionary for smartphones.
Just to put into context that’s a 40-50% increase compared to smartphones batteries today.
Enovix is proceeding very carefully step by step to scale this product. Who wants a company that is going to rush things? No one!
Slow and steady wins the race with Enovix. They are closer than ever. The problem is retail investors want results now, and that’s not smart at all. Enovix knows how important it is to put all the pieces of the puzzle together and in tact.
Once scaling is ready this will be huge.
The future is bright!
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Jimmydeanbutnotsausage
all is true except by the time they are adopted Enovix will no longer have any protection on their patents and CATL or some other Chinese firm will have ripped off the tech and made it better. Sorry used to be a true believer and diamond handed hodlr Enovix is ded.
Bearish
——————-
Keaper2014
Enovix doesn’t rely on one patent — they rely on a stacked portfolio of architecture‑specific patents. Each new improvement resets the clock for that improvement.
So even when the earliest 3D‑architecture patents expire, the full architecture is still protected because:
New constraint‑system patents
New tabbing and bus‑bar patents
New compressible‑cathode patents
New safety‑layer patents
New manufacturing‑method patents
…all have their own 20‑year clocks.
This is why companies like Qualcomm, Tesla, and Apple maintain protection for decades — not from one patent, but from a continuously refreshed portfolio.
Enovix is doing the same thing. The commercial patent protection is easily 10-20 more years.
Feb 19, 2026 8:01 PM
Enovix Advances Toward Smartphone Commercialization as Revenue and Margins Improve
byLuca Blaumann February 26, 2026
Enovix Corporation (ENVX) reported fourth-quarter and full-year 2025 results highlighting steady revenue growth, improving margins, and continued progress toward commercializing its advanced silicon-anode lithium-ion batteries.
Fourth-quarter revenue reached a record $11.3 million, up from $9.7 million a year ago. Full-year revenue climbed 38% to $31.8 million, driven primarily by defense and industrial shipments from its South Korea operations. Non-GAAP gross margin improved significantly to 23% for the year, reflecting operational execution gains and higher production volumes.
CEO Dr. Raj Talluri emphasized that completing smartphone qualification remains the company’s top priority. During the fourth quarter, evaluation samples met energy density, fast-charge, and safety requirements, while cycle-life performance improved toward customer-defined targets. Enovix has passed 70 of 75 qualification specifications with two smartphone partners and identified multiple pathways to clear remaining hurdles.
Chairman T.J. Rodgers noted that the Penang manufacturing line is largely functional, with the primary production constraint tied to laser dicing throughput. The company is pursuing both process optimization and alternative mechanical solutions to unlock higher volume capacity.
Beyond smartphones, Enovix sees smart eyewear as a potential early commercialization opportunity. The AI-1 battery platform appears to meet the volumetric energy density requirements of leading smart eyewear manufacturers, and initial production demand has begun as customers prepare for commercial launch.
Manufacturing readiness improved throughout 2025, including leadership consolidation under Kihong Park and enhanced advanced manufacturing expertise. Fab2 in Malaysia continues to show yield and throughput gains, positioning Enovix for higher-volume production.
Despite continued operating losses, free cash flow improved year over year. The company ended 2025 with approximately $621 million in cash and marketable securities, providing runway to complete qualification and scale production.
With industry-leading energy density of 935 Wh/L and expanding engagement across smartphones and AI-powered wearables, Enovix is positioning itself at the forefront of next-generation battery technology commercialization.
bsprelude
Defense & Drone Revenue Ramp
While consumer electronics are the future, the defense sector is the current “breadwinner.”
The Milestone: Converting the $100 million drone battery pipeline into recognized revenue.
Timeline: Throughout 2026.
Why it matters: In Q4 2025, defense (primarily via their Korean subsidiary Routejade) drove record revenues. Achieving the goal of 400 Wh/kg energy density for drones in 2026 would make Enovix the gold standard for military UAVs.
I don’t know why this does not get more attention given our current geopolitical mess.
Very bullish and I believe this should be pulled up along all the other defense contractors stocks
Bullish
Mar 05, 2026 6:49 PM
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Mountainbiker168
6:54 PM
@bsprelude All have been focusing on smart phones and hence thr defense narrative gets lost
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ObserverFXX
6:55 PM
@bsprelude $100M in revenue means nothing if half the batteries are scrap At 50% yield they’re just scaling losses.
spencer baker
@spenbaker
I see no reason to fret about grandiose claims of superior battery performance from Chinese companies. Some on here are saying Honor doesn’t need Envx, blithely claiming that their own battery tech is just as good
For one thing, Europe and US will increasingly put restrictions on Chinese batteries (for example, the recent Buy EU policy).
While Chinese phone makers like Honor often provide physically larger batteries than Western competitors, independent tests show their real-world performance often falls short of advertised longevity
Honor has historically claimed 2 days of battery life for models like the Honor 7, though independent reviewers found they struggled to get 1.5 days under normal use
While large energy capacities are common, poor software optimisation can lead to high standby drain. Tests on the Honor 8 Pro showed 8–9% battery loss overnight despite being in Doze mode
Both Huawei and Honor have faced accusations of using performance test modes that artificially boost scores in benchmark apps, producing results that do not reflect everyday usage
On the ec Raj said:
“we remain engaged with 7 of the top 8 global smartphone OEMs and validation efforts have expanded this year with multiple leading OEMs including those serving the US market.”
The leading smartphone manufacturers serving the US are:
Apple
Samsung
Motorola
Google
At least 2 of the above are currently engaged in validating Enovix’s AI1 battery.
Clearly Honor and the other Asian customer are at the front of the queue and are top priority. Despite having to wait, the others (numbering at least 5) remain very interested in Enovix’s AI platform.
Prior to the ec Envx indicated that they were exclusively dealing with the 2 lead “teaching” customers with the others stuck in a queue. Now they say validation efforts have expanded with the other potential customers.
Possibly that was at the customers request. They were probably given a date such as January 2026 when next steps wrt testing /qualification could begin.
It’s obviously good that these other customers are still there and are now starting the qual process. It’s possible that the biggest customers like Apple are waiting for AI2 to become available before doing so.
宮平守太郎
@shutaromiyahira
$ENVX
The specs are undeniably impressive — 6,660mAh in a foldable and 25% silicon content is strong execution by ATL. Credit where it’s due.
That said, 25% silicon-carbon is still an incremental chemistry optimization within a conventional lithium-ion architecture. It represents progress, but not a structural redesign of the cell.
The real question for investors isn’t whether ATL can iterate effectively — clearly they can. The question is who can sustainably push higher silicon loading and volumetric energy density at scale without compromising cycle life, safety, and manufacturability.
Strong incumbent performance doesn’t eliminate the opportunity for architectural innovation. Major OEMs also don’t single-source critical components like batteries. Even a small allocation in a flagship program can be meaningful at Enovix’s current scale.
Disruption doesn’t start with majority share — it starts with a foothold. If the performance delta is real and scalable, adoption will begin modestly and expand over time. The window doesn’t close because incumbents execute well; it closes only if the challenger fails to deliver.
Stingraystev
What everyone invested needs to understand.Because Enovix uses a 100% active silicon anode, silicon swells a lot during charging 150–300% volume expansion.That swelling has to be mechanically constrained or the battery fails.
Expansion must stay within very tight tolerances. Manufacturing variation must be extremely small
0.07 mm is too large, and 0.02 mm is acceptable for reliable cycling.The company has to manufacture cells where every layer is aligned with 20 micron precision 0.02 mm.That’s extremely tight for high volume battery production.Right now the main bottleneck is electrode dicing and stacking precision in their production lines. If that process isn’t precise enough,tolerances widen which affects these micron level specs.They must maintain semiconductor level precision in battery manufacturing, which is unusual for the battery industry.Maintaining the tighter tolerance at scale is one of the reasons Enovix’s ramp has been difficult.
The issue can be fixed. But the real question is how difficult it is to fix at mass production scale, and that’s where the uncertainty with Enovix comes from. Silicon anodes expand dramatically when charged. The real difficulty is manufacturing precision. Where things get hard is mass production.Because silicon expands so much,the battery layers must be manufactured with EXTREMELY tight alignment and thickness control. If the tolerances drift,internal pressure becomes uneven,cycle life drops,yields fall.That’s why Enovix has had yield problems scaling factories.So the challenge is not discovering a solution it’s producing millions of cells with identical precision.
The single technical milestone that will tell you whether Enovix ultimately succeeds or struggles is manufacturing YIELD at scale. For a battery factory to be economically viable, yield usually needs to be roughly 70–90% in mature production.
The architecture they use is unusual, 3D stacked electrode structure,laser cut electrodes,mechanical constraint system to control silicon expansion.This design gives high energy density,but means many more precision steps during manufacturing.If any step is slightly off, the cell fails.So even if the battery chemistry works,poor yield can destroy the economics. Us as investors need to look for one thing, high yield on their high volume line. So the science part is solved, the engineering is solved, it’s the manufacturing part that is yet to be proven.
Thats why they brought in the scale up specialist Ed Casey and the battery equipment expert Sanghyuck Park to solve the problem.
Stingraystev
I think Ed Casey, and Sanghyuck Park will fix the yields issue. Most likely they will proceed with the mechanical punching method.
Raj should be fired immediately after this issue is resolved.
Bullish
Stingraystev
Yesterday 11:38 PM
@Eatons @Juicer123 When a new battery design is introduced they must re-tune laser power,pulse rate,focus depth,feed speed.During that tuning phase yield can fluctuate. Early production always looks worse than steady state.Every manufacturing ramp follows the same curve. Raj’s statement suggests they’re in the middle phase. Everything now hinges on one manufacturing metric, cells per hour leaving Fab2. If that number starts rising quickly,shorts will cover,analysts will raise targets,the stock could move violently upward. There is actually one specific engineering change that could fix the bottleneck very quickly, and we talked about this the other day, and that’s replacing laser dicing with mechanical punching. If that transition works, it could increase throughput 10x, dramatically lower scrap and simplify the process. Which would make stock go parabolic once that step is solved.
@TradeN4Cash
Mar 10, 2026 11:59 PM
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ikarus72
7:22 AM
@Stingraystev
I honestly don’t see mechanical dicing (the ‘Plan B’) becoming the primary solution. All signs point to the new 1,000W / 10W Deep-UV laser technology from IPG Photonics being the real game changer here. The main reason Enovix struggled with the 100% 0.7C charging requirement from Honor was likely due to edge defects and micro-cracks caused by the older, lower-power laser process. This specific IPG 266nm Deep-UV tech provides much cleaner edges with minimal thermal stress, which should directly resolve the 0.7C stability issues. Plus, the recent job postings in Malaysia for laser maintenance and AOI (Automated Optical Inspection) specifically for these systems suggest that this hardware is already being installed and prioritized over mechanical stamping.
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Stingraystev
9:23 AM
@ikarus72 The key question is throughput.
Even with high power systems from IPG Photonics, the real challenge is can it cut millions of electrodes per day? If not, it might still only be used for critical layers,prototype production,smaller batteries.Hiring for laser maintenance engineers AOI does suggest new equipment installation,and scaling of optical inspection systems.But it doesn’t necessarily prove laser dicing is replacing mechanical tooling. It could also mean hybrid manufacturing,laser trimming,or inspection for stacking defects, just saying but we don’t know for sure.The real question is does the dicing process cause the yield problems?
If yes, then switching to better lasers could fix it.If the issue is stack alignment or formation yields, then lasers won’t solve it.Your theory about deep-UV lasers reducing edge defects and improving 0.7C stability is technically sound,but it’s still speculative until we know the root cause of the yield problem and whether Enovix can achieve mass-production throughput with laser dicing
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ikarus72
@Stingraystev I disagree on the hybrid approach. A hybrid solution won’t fix the structural root cause: edge micro-cracks from mechanical stress. To pass Honor’s strict 100% 0.7C requirement, you need the ‘cold ablation’ precision of the new IPG 10W Deep-UV/USP laser right from the first cut.
This isn’t just about quality—it’s about scale. These new 266nm systems are designed to multiply throughput compared to older laser generations or mechanical dicing. The fact that Enovix is currently hiring specialized USP Laser Yield Engineers and AOI experts in Malaysia confirms they are doubling down on a pure, high-speed laser process to hit those June ship dates. No hybrid compromise, just better physics
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Stingraystev
Follow
@ikarus72 Your laser first thesis could technically be considered,especially regarding edge integrity and high rate charging. But the biggest unknown remains whether edge defects were actually the bottleneck, or whether the bigger challenge lies in the stacked cell assembly itself. Regardless, we will eventually all find out. Whatever it may be, I hope they solve it, and quickly.
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ikarus72
@Stingraystev True, we’ll eventually find out where the bottleneck really was. Regardless of the technical specifics, I share your hope that they solve it quickly. It would be great to finally see some positive momentum and news from the team. Let’s hope June gives us the clarity we’re looking for
The practical top-end for silicon content in a conventional rolled/would phone battery is likely 25-35% before the architecture fundamentally breaks down. Beyond that, you either need:
1. A completely different cell architecture (Enovix)
2. A different anode chemistry entirely (solid-state)
The Chinese OEM race is fast approaching that ceiling right now.
Honor’s latest phone battery has 32% silicon. It can’t increase the silicon content beyond that unless it adopts
Enovix Batteries
This is why cell companies are even looking at envx…to stay ahead…
Sukhvinder
@SukhvinderBird
Steve Crawford
Stingraystev
After listening to the recent ER, and despite the noise around delays, the latest update from Enovix actually reinforces a clear path to ramp in 2026. The majority of the process is already yielding at strong levels, with the remaining constraint isolated to laser dicing, a known actively addressed bottleneck rather than a fundamental technology failure.Management is working through fixes in H1 2026, setting up a high probability resolution window in Q3 2026, which would unlock throughput and enable the first real production ramp into H2. At the same time, they are positioning for scale by preparing to add additional production lines once the process is stabilized, meaning capacity can expand quickly once the bottleneck is removed rather than starting from scratch.
With smartphone qualification progressing in parallel, this creates a tight sequence of catalysts,bottleneck resolution,qualification,volume orders,multi line expansion that could rapidly shift the narrative from execution risk to scaling story.
Positioning Enovix for meaningful revenue acceleration into 2027 and beyond.
Mar 18, 2026 10:21 PM
Stingraystev
The fact that there have already been 9 lithium-ion battery fires this year in Ottawa highlights a growing problem with traditional battery architectures. As devices pack more energy into smaller form factors, the risk of thermal runaway becomes more real,especially when cells are damaged or short-circuited. This is exactly the type of safety issue Enovix is aiming to solve. Their BrakeFlow technology is designed to rapidly dissipate energy and interrupt current flow during a fault event, helping prevent the chain reaction that can turn a battery failure into a fire. 9 fires in a single city in just a few months is beyond incredible. Solutions that can actively stop thermal runaway before it spreads could become essential and mandatory as energy density continues rising across phones, wearables, and other electronics. Enovix will be more than just another battery company, they’re potentially delivering a safer architecture designed for the next generation of high energy devices.
Bullish
Apr 04, 2026 2:16 AM
Stingraystev
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$ENVX After listening to the recent ER, and despite the noise around delays, the latest update from Enovix actually reinforces a clear path to ramp in 2026. The majority of the process is already yielding at strong levels, with the remaining constraint isolated to laser dicing, a known actively addressed bottleneck rather than a fundamental technology failure.Management is working through fixes in H1 2026, setting up a high probability resolution window in Q3 2026, which would unlock throughput and enable the first real production ramp into H2. At the same time, they are positioning for scale by preparing to add additional production lines once the process is stabilized, meaning capacity can expand quickly once the bottleneck is removed rather than starting from scratch.
With smartphone qualification progressing in parallel, this creates a tight sequence of catalysts,bottleneck resolution,qualification,volume orders,multi line expansion that could rapidly shift the narrative from execution risk to scaling story.
Positioning Enovix for meaningful revenue acceleration into 2027 and beyond.
Mar 18, 2026 10:21 PM
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TradeN4Cash
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$ENVX Why does this company have SO many employeees if they can NEVER get anything done? What do they need over 600 employees for?
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Stingraystev
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$ENVX @TradeN4Cash @Mountainbiker168
Enovix has 6x more employees than Amprius with similar revenue.That’s why your gut is screaming something’s off.the difference is so extreme because amprius is focused niche markets like drones and aviation which means lower volume and higher margin, which uses more traditional manufacturing pathways by outsourcing with a simpler scale model. The result is lean team works. Enovix is trying to reinvent battery architecture 3D silicon, by building custom manufacturing equipment and scale to mass consumer electronics. They are basically building Tesla + ASML + a chemistry lab at the same time.That’s why headcount explodes.Manufacturing complexity and this is key.Amprius can produce batteries using more adaptable processes, Enovix needs custom line design, precision stacking, new yield learning curves and that requires hundreds of engineers, equipment specialists, yield/debug teams and STILL may not work which is what we are seeing.
Know what you own!
Bullish
Mar 20, 2026 1:19 AM
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Stingraystev
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$ENVX “Investors” who expect a complex, next generation battery company to scale like a meme stock instead of a manufacturing breakthrough and obsess over daily price swings are in the wrong stock. Ignoring the brutal reality of yield optimization, equipment tuning, and production ramp, things that always take longer than hoped, and separate real companies from hype. Then you’ve got the crowd bragging about selling at $8 or $12 like it’s some kind of victory lap when in reality it just screams weak hands and zero conviction like @TradeN4Cash They’re not managing risk, they’re reacting emotionally, bailing at the first sign of discomfort. Instead of understanding the process, they turn to calling it a failure like @anonymousguy100 as if impatience itself were an investment strategy. Ironically, these are often the same people who sell low out of frustration, only to watch from the sidelines later when the real payoff finally shows up.
Bullish
Mar 20, 2026 2:18 PM
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Stingraystev
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Investing in $ENVX isn’t something you stare at every day or try to trade week to week. it’s the kind of stock you put in a closet, lock the door, and come back years later. The company is attempting something extremely difficult, scaling a completely new battery architecture with a silicon anode and 3D design that could dramatically increase energy density for next generation devices. Breakthrough technologies rarely scale smoothly, and the volatility we’re seeing is exactly what happens when the market loses patience before the engineering is finished. If they solve manufacturing and yields, the upside could be astronomical, relative to today’s price. But this is not for people who check the chart every morning like @TradeN4Cash and @anonymousguy100
If the swings keep you up at night, it’s better to sell and move on, because long term innovation plays require patience, conviction, and the ability to ignore the noise.
Mar 23, 2026 7:04 PM
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Stingraystev
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$ENVX Despite the noise around short term manufacturing challenges, the long term bull case for Enovix remains intact. The real hurdle has never been the technology itself, it has been scaling production yields at its Malaysia Fab2 facility, which is a common challenge for any breakthrough hardware company transitioning from prototype to mass manufacturing. As yields improve and production lines stabilize, even modest commercial adoption could unlock a massive market opportunity, because demand for smaller, longer-lasting batteries continues to explode. When management executes on manufacturing the way they believe they can, the entire narrative around the company will shift quickly, from doubt about scaling to recognition that they built one of the most advanced battery platforms in the industry.
The future is bright!
Bullish
Mar 24, 2026 5:18 PM
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hesheriff
Mar 24, 2026 5:23 PM
@Stingraystev
Unfortunately, management suggests they can scale without proof, hence the share price.
The short thesis has pivoted from this is fraudulent tech / company to they cant scale (reasonable).
Time will tell
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Stingraystev
@thesheriff The fact the short thesis has shifted from ‘the tech is fake’ to ‘they can’t scale’ actually says a lot about Enovix. The technology debate is over, now it’s purely an execution question. Scaling advanced manufacturing is hard and almost every breakthrough hardware company hits this phase.
When they solve the yield issue, the entire bear thesis disappears overnight.
Like you said, time will tell but that’s exactly why some of us are willing to hold through the noise.
Mar 24, 2026 5:30 PM
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Stingraystev
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$ENVX When people see a company struggling, low stock prices, cash burn, or production delays it’s easy to panic. But history is full of examples of companies that faced near bankruptcy, skeptical investors, and years of setbacks and still came out as massive winners. some fell 80–90% an were literally almost bankrupt, yet proved that persistence, execution, and solving hard problems.
Apple (almost bankrupt) nearly collapsed in 1997 before the return of Steve Jobs
Amazon (almost bankrupt) – the dot-com crash nearly wiped them out in 2000–2001
Netflix (almost bankrupt) – cash crisis in 2000 and tried selling to Blockbuster
Tesla (almost bankrupt) – nearly ran out of money in 2008 and again in 2018
Nvidia (almost bankrupt) – early GPU failures nearly destroyed the company in the 1990s
AMD (almost bankrupt) – severe financial struggles before the Ryzen turnaround
Meta Platforms – heavily doubted during the mobile transition
Salesforce – nearly ran out of cash during the early 2000s downturn
Micron Technology (almost bankrupt) – memory market crashes nearly destroyed the company
Intel – struggled badly before pivoting from memory chips to CPUs
Qualcomm – huge early financial risk developing CDMA technology
Broadcom – nearly wiped out during the dot-com semiconductor crash
Texas Instruments – major restructuring before stabilizing
ASML (almost bankrupt) – survived early years only after support from Philips
General Electric (almost bankrupt) – enormous financial crisis in the late 2010s
Starbucks – declining sales forced a turnaround
Nike – almost collapsed in the early 1980s
Costco – heavily doubted early because of ultra-thin margins
Uber – years of huge losses and regulatory battles
Airbnb (almost bankrupt) – founders sold cereal boxes to keep the company alive
PayPal (almost bankrupt) – fraud nearly destroyed the company in the early days
LinkedIn – slow growth before eventually exploding
General Motors (almost bankrupt) – government bailout in 2009
Boeing (almost bankrupt) – severe financial crises in the 1970s and again during the pandemic
IBM (almost bankrupt) – almost collapsed in the early 1990s
3M – decades of failed products before becoming an innovation powerhouse
Dyson (almost bankrupt) – founder James Dyson made over 5,000 prototypes before success
FedEx (almost bankrupt) – Fred Smith once gambled the company’s last money to keep it alive
Oracle (almost bankrupt) – accounting scandal nearly destroyed the company
Twitter – years of operational chaos before profitability
Alibaba Group – heavily doubted before dominating Chinese e-commerce
Nokia (almost bankrupt) – nearly collapsed before reinventing itself in telecom infrastructure
Axon Enterprise (almost bankrupt) – the company (then Taser) dropped over 90% and faced lawsuits, product controversies, and years of stagnation before becoming a massive success in police technology
Mar 24, 2026 9:41 PM
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Stingraystev
Enchem announcement in December 2025 is they secured a multi year electrolyte supply agreement with Enovix after years of joint development.Electrolyte is a critical battery component, and suppliers don’t commit to multi year contracts unless they expect real production. The deal reportedly covers about 1,000 tons of electrolyte between 2026–2028, tailored for Enovix’s silicon-anode batteries.That kind of supply commitment strongly suggests Enovix’s ecosystem partners are preparing for actual manufacturing volume coming out of Malaysia. translating that electrolyte volume into batteries,rough math suggests 1,000 tons could support 100 million batteries, give or take depending on cell size and manufacturing efficiency. Spread over three years, that’s tens of millions of cells per year, exactly the type of early scaling you’d expect from a new battery architecture ramping production. In other words it’s a supply chain partner positioning itself for meaningful output from Enovix.
It would be very unlikely for Enovix to enter into a multi year materials supply arrangement if management believed scaling the battery was impossible. When a company lines up a supplier like Enchem for specialized electrolyte, it usually means the chemistry, testing, and integration work have progressed far enough that both sides expect real production demand. Suppliers don’t typically commit manufacturing capacity for a custom electrolyte formulation unless they believe the battery design is moving toward commercialization.
Bullish
Mar 26, 2026 12:02 AM
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Stingraystev
Many retail investors believe the volatility in Enovix isn’t just random, it often feels like a classic shakeout. When a disruptive company is still early in its growth and scaling phase, the easiest shares for larger players to accumulate are the ones held by impatient retail investors like @TradeN4Cash and @anonymousguy100
By allowing the price to drift lower, amplifying fear around delays, yields, or cash burn, and keeping sentiment negative, weak hands eventually sell in frustration. Once enough retail holders are shaken out and shares consolidate into stronger hands, the dynamic can flip quickly,because with fewer sellers left, even modest positive developments can push the stock higher. That’s why long term investors in companies like this often view these periods not as the end of the story, but as the uncomfortable phase where conviction is tested before the market eventually reprices the opportunity
Bullish
Mar 26, 2026 4:14 PM
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MsKMC
@Stingraystev @anonymousguy100 @TradeN4Cash i am at 22000 shares, and I wanted to buy more before yesterday’s rise but i was washing afraid to risk more money than I already have. I am currently underwater by fifty percent. I am not rich by any means but I really believe in this company. I believed in SMCi too, so that’s where belief gets you sometimes. That said, I would rather lose my money on my own than let some financial planners steal it for me, year after year while gaining me nothing. I am playing catch up now and hoping for a semi positive -outcome. As of right now, it looks like I will be dying at my desk.
Mar 26, 2026 4:52 PM
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Stingraystev
@MsKMC @anonymousguy100 @TradeN4Cash
I think a lot of people in this stock can relate to that position. Believing in a company and understanding the risk are two different things, and most long term investors have had both winners and painful drawdowns along the way. The key difference with Enovix right now is that the debate isn’t about whether the battery works anymore,it’s about whether they can scale manufacturing efficiently. When they solve that, the current price will look very different in hindsight.Being down 50% isn’t easy, but it doesn’t mean the outcome is already decided. Markets have a way of testing conviction before rewarding patience. Whether someone holds, adds, or reduces is a personal decision, but it should always come down to the fundamentals and execution, not fear or hope.
Mar 26, 2026 6:42 PM
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BarryMacCockiner
@Stingraystev @MsKMC @anonymousguy100 @TradeN4Cash Yup, long since 2022 and sitting at 6500 shares at $10.12. I’ll probably look at adding some more to get to 7000 and swing 1K around my core 6K. It’s definitely been a frustrating ride and wish I’d been swinging the last few years as I’d have probably 15K now but whatever… I think our patience will be rewarded in the next year.
Mar 27, 2026 5:59 PM
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Stingraystev
@BarryMacCockiner @MsKMC @anonymousguy100 @TradeN4Cash i can’t disagree, but only because we’ve already seen the results up until today. No one who invested in Enovix expected the stock to be sitting in the single digits after all the excitement around the technology and scaling potential. If anyone had a crystal ball and knew the price would swing this violently from the $30’s down to the $4’s and back and forth along the way of course people would have swing traded every move and multiplied their share count. But that’s the reality of early stage disruptive companies,the path is rarely smooth, sentiment swings wildly, and hindsight always makes trading look easy. Most long investors didn’t sign up to perfectly time volatility,they invested because they believe that when Enovix eventually proves it can scale its battery technology, today’s price fluctuations will look insignificant in the long run.
Mar 27, 2026 6:05 PM
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BarryMacCockiner
@Stingraystev @MsKMC @anonymousguy100 @TradeN4Cash I think the problem is what you define as “the long run”, because in the real long run, we’re all dead. Day to day means nothing, but years of frustration with delays pile up, and the opportunity cost is real. Now, I’m in it for what the price should be in 2029, but if they don’t have a large PO in hand by EOY, I’ll have to think about scaling out. Eventually, you gotta produce and tell the damn truth about why you’re at where you are, and TJ finally did that in the last EC after nudging out Ajay. That gives me hope that they’ve figured out how to solve the problem, and so now they need an EOM to agree and pony up the $$. We’ll see if that happens over the next few months (a large buy from insiders sure would help with that conviction, TJ! Hint, hint..)
Mar 27, 2026 6:14 PM
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Stingraystev
@BarryMacCockiner @MsKMC @anonymousguy100 @TradeN4Cash
I get the frustration, delays and opportunity cost are real, and anyone pretending otherwise isn’t being honest. But when you’re dealing with a deep tech manufacturing company like Enovix, the timeline was never going to look like a smooth quarterly progression. The real question isn’t how long it’s taken, it’s whether the underlying problem is getting solved and whether customers eventually show up with real orders. The last earnings call from T.J. Rodgers was the first time management spoke very directly about the yield challenges and the path forward, and that kind of transparency actually increases my conviction rather than reduces it. When they land a meaningful OEM engagement over the next few quarters, the years of frustration people are focused on right now will look like noise in hindsight that’s usually how these deep tech stories play out.
Mar 27, 2026 6:50 PM
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Stingraystev
Steve Crawford
@Stingraystev
As for the “frustrated longs,” some of you need to stop pretending you’re long term investors. If you call yourself long but melt down every red day, you’re not a long you’re just a short term trader who accidentally got stuck holding shares. Real long investors understand that early stage companies can spend YEARS building before the market rewards them. Constantly whining about the price while claiming you’re in for years just tells everyone you never had the patience or conviction in the first place. If the volatility bothers you that much, the sell button works perfectly fine and someone else who actually understands what long term investing means will gladly take those shares.
Mar 26, 2026 10:53 PM
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thesheriff
Mar 28, 2026 3:35 PM
We need a substantial PO demonstrating that mass production from a line is feasible.
Bullish
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Stingraystev
Steve Crawford
@Stingraystev
needing a substantial PO to prove mass production is feasible is a backwards way of thinking. Purchase orders don’t prove manufacturing capability, factories do.The company already built and commissioned high volume equipment at Fab2 and is qualifying production with customers. Large OEM POs usually come AFTER line qualification and reliability validation, NOT before. No major customer is going to place a giant order for a brand new battery architecture until the production line passes qualification runs and the product meets their cycle life, safety, and yield requirements.It goes like this,scale the line, qualify the product with customers, secure design wins, and then orders ramp. The idea that a massive PO should appear before manufacturing validation ignores how supply chains actually work. If anything, the fact that Enovix is staffing product roles and preparing IP protection suggests they expect real products and customer ramps, not theoretical ones.
Mar 28, 2026 4:35 PM
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Stingraystev
Steve Crawford
@Stingraystev
Joined Nov 2024
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$ENVX The bears keep acting like Enovix is stuck in science project mode,but the company is hiring product managers for specific end markets like smart eyewear and drones while expanding its patent IP protection team.Companies don’t hire product managers tied to real device categories unless they’re moving toward actual commercialization and customer programs.That’s not the behavior of a company guessing in the lab,it’s the behavior of a company preparing products for OEMs and protecting the technology that’s about to matter.At the same time, adding more focus on patents signals they expect their silicon anode architecture to be valuable enough to defend as it scales. In other words: build the product,lock down the IP, and get ready for customers.The market may still price ENVX like a failed experiment,but the hiring signals look a lot more like a company gearing up for real product launches and future volume demand. Nonvisionaries like @TradeN4Cash and @anonymousguy100 won’t get it.
Mar 28, 2026 3:10 PM
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Stingraystev
Being mentioned in the Volta Foundation report means Enovix is on the radar of the global battery research community.In the High Performance Battery Cell Suppliers section of the Volta Foundation report, Enovix is listed alongside established and respected battery companies such as Sony, Panasonic, Murata Manufacturing, LG Energy Solution, and EVE Energy.That grouping matters because the report isn’t listing early research startups there,it’s categorizing actual cell manufacturers working on high performance batteries.the industry report is treating Enovix as part of the global battery supply ecosystem, not just a speculative R&D company.battery researchers and industry insiders already view Enovix as a legitimate cell manufacturer pursuing next-generation lithium-ion technology.
Apr 05, 2026 12:31 AM
https://www.ted.com/talks/shahram_izadi_the_next_computer_your_glasses
The life-changing magic of wearing smartglasses
Readers respond to Elle Hunt’s review of Meta smartglasses, pointing out that the technology has a lot to offer to people with visual impairments or hearing loss
Tue 7 Apr 2026 18.58 CEST
I read with sympathy the concerns of Elle Hunt in relation to privacy issues around Meta smartglasses (I wore Meta’s smartglasses for a month – and it left me feeling like a creep, 1 April). Clearly there needs to be ongoing development of technology and protocols that protect the public from ill-intentioned users. As the chief executive of a charity supporting people with a visual impairment, however, I would like to emphasise the point touched upon in your article: how transformative this technology is already proving for blind people.
We are seeing significant numbers of our visually impaired staff and clients using Meta glasses in conjunction with their mobile phones to improve their ability to perform ordinary functions that most of us take for granted. A visual impairment can be disempowering and isolating. Having a tool that can read your bills to you, tell you when your bus is coming, make calls for you when your hands are full and read the cooking instructions on your dinner is offering a level of independence that many visually impaired people have lost.
I am mindful that the visually impaired population (more than two million people in the UK) will not be a large enough market for Meta and other companies currently developing such wearable devices. So let’s hope that they can resolve the concerns about privacy soon enough to ensure that this gamechanging technology continues to be developed.
Sherine Krause
Chief executive, Sutton Vision
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Elle Hunt says smartglasses are, for now, “not reliable or functional enough to offer consistent support” as an assistive technology, but for some of us they are already changing our lives for the better.
I have suffered a progressive hearing loss since around the age of 10; it terminated my first career, hobbled my second, destroyed my social life and caused me years of stress. Recently I discovered AirCaps, a phone app that comes with a pair of Rokid smartglasses. This app converts live speech to captions which are displayed on the glasses for me to read. Accurately, in real time, subtitles for life. It has been 100% reliable so far, and completely unlike the Meta experience that Hunt describes.
For people with disabilities, the age of smartglasses that subtitle speech really has arrived, and some acknowledgment of this might help us when people accuse us of being “creeps” for wearing “pervert glasses” (although at least we’ll know what they’re saying).
Laurence Amery
Hastings, East Sussex
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I have juvenile macular dystrophy and have no central vision. My Meta glasses are terrific. I use them to read newspapers, which I have not done for more than 30 years. We receive a monthly Welsh language magazine and now I’m able to read it. I just say: “Hey Meta, look and translate into English.” At Worcester Cathedral, I was able to read the plaques on the wall for the first time in decades. I came across one that sounded like Latin, and again the glasses translated it successfully.
Last week I was at the National Maritime Museum, and was able to enjoy the exhibits without the need for any assistance. I could read all the plaques using my glasses. Walking around Kensington, I came across a fancy sports car. I asked the glasses to tell me about it. It was a Ferrari, and the glasses gave me all the details that I could have wished for. Certainly a life-enhancing device.
Vaughan Lewis
Pontardawe, Neath Port Talbot
crheat
Interesting change in the way Vivo India describes their battery technology for the new Vivo T5 Pro. In previous PRs they’ve described their battery technology as silicon-carbon anode but for this latest phone they are describing it as silicon anode.
Bullish
Apr 09, 2026 11:20 AM
spencer baker
@spenbaker
·
33m
$envx
This is from Gemini re Snap:
The relationship between Enovix (ENVX) and Snap Inc. (SNAP) is a strategic partnership focused on solving the most significant hurdle for augmented reality: battery life.
While both companies have historically kept the specifics of their collaboration close to the chest, it is an “open secret” in the hardware industry that Enovix is the primary battery supplier for Snap’s next-generation AR glasses.
1. The Core Collaboration: Next-Gen AR Glasses
Snap is currently preparing for the commercial launch of its consumer-ready AR glasses (often referred to under its new subsidiary, Specs Inc.), slated for late 2026.
•The Lead Customer: In early 2026, Enovix management confirmed they are manufacturing batteries for their “lead customer” in the smart eyewear space.
•The Problem: Traditional lithium-ion batteries are too bulky for sleek glasses. To make AR glasses look like “normal” eyewear while powering high-resolution displays and AI processing, Snap needs the energy density that only silicon-anode technology can provide.
2. Technology Integration
The collaboration centers on Enovix’s AI-1™ 100% active silicon-anode battery. This technology is a game-changer for Snap for several reasons:
– 3D Cell Architecture allows the battery to be shaped to fit the thin temples (arms) of the glasses.
– Provides up to 2x the capacity of standard batteries in the same footprint.
– Fast Charging enables users to quickly top off the glasses, essential for a device intended for all-day use.
– Thermal Management: Silicon-anode batteries handle the heat of high-performance chips (like the Qualcomm Snapdragon chips Snap uses) more efficiently.
3. The “Power Triangle”
The collaboration is part of a broader “Power Triangle” between three major tech players:
i. Snap Inc. (The Vision): Designs the OS and the user experience.
ii. Qualcomm (The Brain): Provides the Snapdragon AR2/XR processors.
iii. Enovix (The Heart): Provides the high-density power required to run the Qualcomm chips for more than just a few minutes.
4. Recent Developments
•Production Scaling: Enovix has moved from the “sampling” phase to “mass production” in its Fab2 facility in Malaysia to meet the projected demand for Snap’s 2026 launch.
•Reference Designs: Enovix recently showcased reference designs at industry events (like CES and IBS 2026) that demonstrate a 60-90% increase in battery life for AR glasses, widely believed to be the spec-set for Snap’s upcoming consumer product.
Summary of Connection
Enovix is the critical hardware enabler for Snap. Without the breakthrough in battery density provided by Enovix, Snap’s vision of lightweight, all-day wearable AR glasses would remain a tethered or bulky prototype rather than a consumer reality.
spencer baker
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Ordinarily a like doesn’t mean much, but this like is from Enovix’s business development & sales director.
We already know that Envx has partnerships or connections with Qualcomm and Snap. A PO from the latter seems increasingly likely.
Bbboston
You are correct but the future is bright comment is too speculative.
They must fix their manufacturing issues first, or there is no future, bright or otherwise
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Stingraystev
Enovix can fix the yield issue by improving the laser dicing step, which is currently the main bottleneck, through better process control, equipment optimization, and engineering tweaks to increase consistency and throughput. If laser dicing still limits scaling, they also have a backup option to switch to mechanical electrode cutting, which is a more mature and proven manufacturing method. It’s not a matter of if, but a matter of when.
As AI moves onto devices themselves, energy demand is only going to increase, and batteries will become the limiting factor. When Enovix successfully scales manufacturing and improves yields, its technology will end up powering a wide range of future devices from AI enabled smartphones and wearables to drones and autonomous robots. Add in the safety advantage of their BrakeFlow system designed to reduce thermal runaway risk, and the potential market becomes even larger. That’s why the real focus isn’t short-term price moves, it’s the scaling milestone that will position Enovix as a key battery supplier for the next generation of AI hardware, robotics, drones, and wearable computing.
The future is bright!
Apr 12, 2026 7:48 PM
Why 14 western battery companies went under while demand kept rising
Lessons from $20B in failures
Christopher Chico
Apr 14, 2026
Another one.
That was my reaction when I saw that Ascend Elements filed Chapter 11 on April 9, 2026.
The company had raised over $1.1 billion, but its Kentucky facility stalled at 60% completion, contractors were owed over $145 million, and a $316 million DOE grant was pulled.
The new CEO, who joined in March 2025 and substantially refreshed the senior leadership team, described what he inherited as a “long history of fiscal and operational mismanagement.”
Three weeks before that, 24M Technologies shut its doors without a filing or a press conference.
The U.S. battery start-up, valued at over $1 billion, was built around an IP licensing model in which only Kyocera in Japan was producing batteries using its technology, with plans to reach an annual capacity of around 400 MWh.
From January 2025 to April 2026, 14 Western battery companies went under despite raising more than $20 billion in total, with Northvolt accounting for $15 billion on its own.
Here’s the graveyard list of the 14 Western battery companies that went under
iM3NY (New York, US)
Bedrock Materials (US)
Northvolt (Sweden)
Li-Cycle (Canada/US)
CustomCells (Germany)
Powin (Oregon, US)
Aleon Metals (Texas, US)
Natron Energy (California/Michigan, US)
BMZ Group (Germany)
Lithion Technologies (Quebec, Canada)
Ample (California, US)
Trion Battery Technologies (Calgary, Canada)
24M Technologies (Massachusetts, US)
Ascend Elements (Massachusetts/Georgia/Kentucky, US)
The five deadly mistakes I keep seeing
The battery market grew in 2025, with CATL posting record numbers. These fourteen Western battery companies failed while the market around them kept growing. The same five mistakes show up in almost every filing.
*****1. They tried to scale or plan the next gigafactory before their first plant actually worked: Natron Energy, Ascend Elements, Li-Cycle, Lithion Technologies, Northvolt.
Natron opened a sodium-ion plant in Michigan in 2024, but UL certification delays blocked $25 million in booked orders, and the plant never stabilized. While Michigan was still struggling, Natron announced a $1.4 billion gigafactory in North Carolina, 40 times larger. The financing never came, and by September 2025, Natron was liquidating.
Ascend operated a Georgia battery recycling plant that required a full shutdown and rework under prior leadership, which court filing analysts on X called a “bonehead maneuver.”
While the Georgia plant was unstable, Ascend broke ground on a $1 billion-plus facility in Kentucky that attracted $16 million in contractor fraud claims. Georgia piled up $145 million in liens, and both projects ended up in bankruptcy.
Li-Cycle raised $1.7 billion and built five spoke facilities, but never finished the Rochester Hub that was supposed to process what they collected. Glencore bought the whole thing for a $40 million credit bid.
Northvolt raised $15 billion and planned gigafactories across Sweden, Germany, Poland, and Canada, yet the first plant in Sweden never reached its target capacity. After losing the BMW contract, Northvolt filed for bankruptcy with approximately $5.8 billion in debt.
Lithion completed its Saint-Bruno plant on June 3, 2024. On that same day, the CEO told the press, “This is just the beginning. We will build more recycling plants.” By October 2025, the company filed for creditor protection and laid off 45 people. The patented extraction technology had never been put into real use.
*****2. They never got to “real revenue”: 24M Technologies, iM3NY, Trion Battery Technologies, Bedrock Materials, and Natron Energy.
Five of the fourteen were pre-revenue or close to it when they went down.
24M was valued at over $1 billion on an IP licensing model that generated real output only through one licensee in Japan. They bet on a technology (semi-solid batteries) that only the Chinese have bet heavily on, and they developed their own.
iM3NY promised 2,500 jobs to New York State, but at the time of the filing, only 22 employees remained, and it had a net operating loss of $142.6 million.
Trion posted $466,000 in revenue against $16.5 million in costs. Bedrock’s CEO returned the money to investors and said the math no longer worked. Years of spending with no proof that the product could sell.
*****3. Bad management and sloppy execution: Ample, Powin, Ascend Elements, iM3NY, Northvolt.
An insider told Electrek that Ample suffered from “poor management due to inexperience, overhyped company statements, and inefficient use of money.”
Staff went from 198 to 2 before filing, and three ex-employees sued under the WARN Act for failing to give the required 60-day notice.
Powin came under public criticism over field safety and thermal problems. Former employees and industry insiders also described rushed deployments that later turned into expensive fixes.
The company also went through multiple leadership changes in the years before it filed
Ascend’s new CEO publicly highlighted the same pattern of fiscal and operational mismanagement.
iM3NY had local press reporting “faulty products and money mismanagement” before it ever filed.
*****4. Total concentration risk (everything riding on one thing). CustomCells, BMZ Group, Aleon Metals.
CustomCells bet on Lilium, the eVTOL company, and when Lilium went insolvent, CustomCells was stuck with tens of millions in unpaid bills.
BMZ lost its biggest energy-storage client and fell apart within weeks.
Aleon Metals operated a single facility in Texas, where a single SO2 scrubber failure reduced throughput by 96%. In each case, one bad break was enough to take down the entire company.
*****5. They promised the full chain but only built half of it: Li-Cycle, Lithion Technologies, Ascend Elements.
All three recyclers told the same story to investors and grant-makers: collect old batteries, break them into black mass, and refine that into battery-grade lithium, nickel, and cobalt. Full circle.
None finished the refining step. Lithion never used its patented extraction process. Li-Cycle’s Rochester Hub was never completed. Ascend’s Georgia line needed full rework.
Lithium prices dropped 70 to 80% from 2022 highs. Black mass alone could not pay the bills.
What this all really comes down to
None of these five problems is hard to see: scaling too fast, no revenue, bad management, concentration risk, and half-built value chains.
All five patterns come down to two things: execution and patience.
The technology in most of these companies worked. The market demand was there. What failed was the ability to get a plant running on budget before committing to the next one.
Cell production, recycling, storage integration: none of it scales fast.
CATL, BYD, Samsung SDI, and LG spent 15 years running small lines and fixing problems on the floor before committing to multi-gigascale production. They built operational knowledge one production cycle at a time.
Western companies tried to close that 15-year gap in under five years, mostly with capital and press releases.
Some of these assets have already changed hands.
Glencore operates Li-Cycle’s Spokes, Lyten acquired parts of Northvolt, SKion rescued BMZ, and FlexGen bid for Powin. The difference is who owns them.
The new owners now operate, or are close to operating, the same plants using the same technology in the same market. They bought the assets cheaply, but the real test begins now, especially for Lyten.
The West needs to change its mindset and drop the arrogance. China is the clear leader in technology, scale, pricing, and quality. Until that is accepted, serious progress will remain difficult.
Thanks for reading The Battery Chronicle!
Eatons
it’s always reassuring to read through the almost daily job postings and the evolving language they use in the postings.
“We are scaling our silicon-anode, lithium-ion battery manufacturing capabilities to meet customer demand. For more information visit enovix.com/ and follow us on LinkedIn.
This is an exciting time at Enovix! We are looking for experienced candidates to help support our new lithium-ion battery production facility in Penang, Malaysia for commercialization of our 3D Silicon™ Lithium-ion Rechargeable Battery.“
Enovix | 100% Active Silicon Anode Battery Manufacturer | High Energy Density Lithium-Ion Cells
https://www.enovix.com
Apr 18, 2026 4:08 PM
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Mountainbiker168
32m
@Eatons Actually yes I notice that too. It really tells you the company is READY….why keep hiring employees if no business visibility. Transformational weeks ahead IMO.
The new about us section reads:
“Enovix develops and manufactures advanced lithium-ion batteries, including proprietary silicon-anode architectures for smartphones, smart eyewear, defense, industrial and emerging edge-AI applications. Its proprietary silicon-anode battery architecture enables higher energy density and performance in space-constrained devices while maintaining safety and reliability, supporting commercialization across consumer and industrial markets.
Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia, servicing customers globally.”
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Ben Metcalfe
@RetailENVX
Great update to the ‘About Enovix’ Description. Makes it sound like you were successful with the Honnor deal.
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spencer baker
@spenbaker
·
Well spotted
No coincidence that phones, eyewear and defense are listed first.
Servicing customers globally also sounds good!
spencer baker
@spenbaker
·
Key changes:
1. The old boilerplate was aspirational (“on a mission to…”, “unlock the full potential…”). The new one is more concrete and operational, stating what the company actually does (“develops and manufactures”) and ties the tech to specific, current target markets.
2. Added/emphasized: Smartphones, smart eyewear, defense, industrial, and especially “emerging edge-AI applications”. These are near term targets.
3. Removed/downplayed IoT, computing devices, EVs. These are longer term targets.
4. The new text says the silicon-anode architecture is “supporting commercialization across consumer and industrial markets.” This is a subtle confidence signal that the company is moving past R&D/innovation storytelling toward “we are getting this into products now.”
5. “servicing customers globally” is broader and more concrete than just “partners with OEMs”.
This update looks like a maturation of the corporate narrative.
$envx
has been scaling manufacturing, shipping defense/industrial batteries and advancing smartphone/eyewear qualifications.
Less “disruptive startup with big dreams” → more “established developer and manufacturer with real applications”.
Companies often refresh their boilerplate when they’ve hit a milestone. This could signal good news to be announced in a fortnight.
Defund_MM_V2
2:52 PM
needs to bounce at open like right now, if not will reject that 6.40 see you at 5 if so
Stingraystev
People who insist that chart patterns dictate where Enovix is headed are putting far too much faith in something that’s fundamentally backward looking. Lines on a chart don’t move a stock,new information does. For a company like Enovix, the real drivers are tangible developments,production milestones, partnerships, earnings surprises, and the broader macro backdrop like interest rates and risk appetite. When those shift, any perfect pattern can break instantly. Treating technical setups as predictive rather than descriptive isn’t just shaky,it ignores the reality that markets react to news and economics, not drawings on a screen.
Apr 28, 2026 4:50 PM
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sangren
Historical charts apply better to companies with a long history that includes actual revenue. $ENVX isn’t there yet. All a $ENVX chart might do is maybe – MAYBE – show patterns related to investor psychology, and if you’re buying or selling on investor psychology, you ought to recognize that what you are doing is gambling, not investing.
Bullish
Apr 28, 2026 5:00 PM
Stingraystev
Waiting on Enovix to take off can feel like watching paint dry, especially when you’re checking the share price every day and expecting something dramatic to happen. But that kind of impatience usually does more harm than good. Companies like Enovix need time to execute. scaling production, refining their technology, and proving their business model doesn’t happen overnight. Staring at short term price movements can make normal volatility feel like failure, when in reality it’s just noise. It’s often healthier and smarter to step back, stop refreshing the chart, and let the company do its work. Trusting the process isn’t passive, it’s recognizing that long term value is built over time, not in daily swings.
Bullish
May 05, 2026 1:25 AM
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ointhebay
2:01 AM
@Stingraystev i been watching for 5 years, whats your definition of long-term?
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idothisforfun
1:39 AM
@Stingraystev “needs time to execute”…. its been 15 years…
FREMONT, Calif., May 5, 2026 — Enovix Corporation, a leader in advanced lithium-ion battery technology, today announced the appointment of Steve Bakos as Senior Vice President of Worldwide Sales. He reports to Samira Naraghi, Chief Business Officer in a newly created role. The move comes as Enovix advances toward the commercial launch of its flagship 100% silicon-anode batteries and continues scaling of its silicon-enhanced product line from Korea. The appointment reflects Enovix’s transition from technology qualification toward commercial execution across consumer and industrial markets.
Bakos is a veteran sales executive with more than 35 years of experience in the global semiconductor industry. He joins Enovix from Infineon Technologies, where he served as Vice President of Corporate Account Sales for large global accounts including Apple. Earlier in his career, he held VP-level sales, distribution and marketing leadership roles at Linear Technology, Intersil, Exar Corporation, and several high-growth startups, building and scaling global sales organizations serving leading customers across consumer communications, industrial and high-performance computing markets. Bakos holds a Bachelor of Science in Engineering from Cornell University.
Bakos’ appointment comes amid expanding commercial momentum across smartphones, smart eyewear, drone and defense applications and underscores Enovix’s commitment to build the commercial infrastructure needed to support scaled revenue growth.
Dr. Raj Talluri, President and CEO of Enovix, said:
“Enovix is entering a new phase where commercial execution must scale alongside our technology leadership. Steve brings deep experience in global account strategy and channel management, making him the ideal leader to help scale our worldwide sales efforts. His track record of building high-performance teams and winning strategic accounts is exactly what Enovix needs in this next phase.
This addition to the team is timely as we recently reached alignment with our lead smartphone customer on a silicon-specific qualification framework that better reflects real-world usage conditions for silicon-based batteries than the legacy 0.7C testing. This updated framework extends testing duration while increasing confidence in field performance, with results approaching required performance thresholds. We believe this addresses the primary structural barrier to qualification and supports broader commercial opportunity across our end markets — and Steve is joining at the right moment to help us capture that opportunity.”
Samira Naraghi, Chief Business Officer, added:
“Steve brings the customer engagement and scaling discipline needed as Enovix expands from strategic qualifications into broader commercial engagements. We are seeing our sales pipelines steadily grow over time, underscoring increased market demand and interest in Enovix products. His appointment strengthens our ability to convert growing market demand into durable customer relationships.”
Steve Bakos, Senior Vice President of Worldwide Sales, said:
“I’ve spent my career building sales organizations at companies where the technology was genuinely differentiated — and Enovix is exactly that. From AI-powered smartphones to smart eyewear to autonomous drones, demand for higher-performance batteries is accelerating meaningfully. My focus will be on building a world-class global sales team, expanding channel partnerships, deepening strategic OEM relationships, and ensuring Enovix captures the commercial opportunity its differentiated technology is creating.”
European Battery Ambitions Hit Hard as Morrow Files for Bankruptcy
Norway’s flagship battery manufacturer collapses despite recent commercial wins, highlighting brutal market realities facing startups in oversaturated sector.
Michael C. Anderson,Editor-in-Chief, Battery Technology,Manufacturing by Informa
May 6, 2026
**Norway’s Morrow Batteries files for bankruptcy despite recent wins, exposing brutal economics facing battery startups
**Total financial exposure exceeds NOK 5 billion including shareholder equity, public loans, grants, facility investments
**Collapse highlights perfect storm: Chinese oversupply, capital intensity, rising financing costs, industrialization hurdles
Morrow Batteries ASA, once heralded as a cornerstone of Norway’s battery manufacturing ambitions, filed for bankruptcy today alongside its subsidiaries Morrow Technologies AS and Morrow Industrialization Center AS, according to a press release issued by the company. The collapse marks one of the most significant failures in Europe’s push for battery production sovereignty and comes despite the company securing major commercial contracts just weeks ago.
The Board of Directors announced it was unable to secure the additional financing needed to complete negotiations with potential industrial investors, citing the company’s deteriorating liquidity position. The bankruptcy will be administered by Norway’s Agder District Court, with employees protected under the country’s wages guarantee scheme.
“What has been achieved at Morrow is the result of extraordinary dedication, resilience, and belief through a period of significant challenges,” said Jon Fold Von Bülow, Acting CEO, in the company’s statement. “While this chapter comes to an end, the knowledge, technology, and capabilities developed here represent lasting value.”
A promising start cut short
Founded in 2020, Morrow Batteries positioned itself as an independent European leader in sustainable battery cell manufacturing, focusing on LFP (Lithium Iron Phosphate) and LNMO (Lithium Nickel Manganese Oxide) technologies. The company attracted heavyweight investors including Siemens Financial Services, ABB, and Norwegian state climate investment company Nysnø, raising approximately NOK 3.3 billion (roughly $300 million USD) in equity.
The company’s Battery Factory 1 in Arendal, housed in a NOK 542 million facility built by industrial real estate investor Siva, represented Norway’s most ambitious bet on becoming a battery production powerhouse. Recent months had brought encouraging signs, including a long-term master supply agreement with Finnish company Proventia Oy and the company’s first defense industry contract with a major German company.
Yet these commercial victories couldn’t overcome the fundamental economics working against the company. The total financial exposure from Morrow’s bankruptcy exceeds NOK 5 billion when including shareholder equity, loan guarantees, Innovation Norway’s NOK 550 million in loans, NOK 202 million in public grants, and Siva’s facility investment.
The technology that attracted $300 million
Morrow’s investor appeal rested on genuine technological innovations that distinguished it from conventional battery manufacturers. According to a March 2024 company press release, the company achieved a 30% increase in cycle life and 10% increase in energy density for its LFP batteries compared to standard offerings.
More significantly, Morrow was developing next-generation LNMO (Lithium Nickel Manganese Oxide) technology in two variants. According to the company’s website (https://www.morrowbatteries.com/batteries/lnmo-platform), LNMO-X, paired with niobium-based anode materials from UK partner Echion Technologies, targeted heavy mobility applications like trains and ferries with ultra-long cycle life and 50% increased energy density compared to batteries with similar safety profiles. LNMO-C, using graphite anodes, offered “the highest practical single-cell voltage in the world (>4.5V)” with performance matching NMC batteries but with improved safety and substantially lower CO2 footprint.
As reported by Charged EVs, the LNMO chemistry eliminated cobalt entirely—addressing ethical concerns around cobalt mining—while reducing nickel and lithium usage by leveraging abundant manganese. This approach promised both sustainability advantages and cost reductions compared to conventional lithium-ion chemistries.
Graphene-Info reports that Morrow also inherited technology from Graphene Batteries, a company that achieved breakthroughs independently validated by Fraunhofer, Europe’s largest application-oriented research organization. Graphene-coated current collector foils were already being used in Morrow’s LFP production, with longer-term plans for graphene-enhanced Lithium-Sulfur batteries that would “significantly improve performance and significantly reduce environmental footprint.”
Operating Norway’s largest battery R&D center with over 70 scientists from 25+ nationalities, Morrow partnered with cutting-edge technology companies including Delft IMP (atomic layer deposition for ultra-thin coatings) and Citrine Informatics (AI-accelerated battery chemistry development). The company was part of the Important Projects of Common European Interest (IPCEI) initiative to build Europe’s battery infrastructure.
The perfect storm facing battery startups
Morrow’s collapse is the latest in a troubling pattern for battery startups attempting to scale in 2025-2026. The company joins others like Natron Energy and Ascend Elements in facing existential challenges. What unites them is a brutal convergence of market forces that has made the path from promising technology to profitable production nearly impossible.
The global battery market has shifted dramatically from shortage to glut. Chinese manufacturers, benefiting from massive state support and established supply chains, have flooded the market with low-cost cells. This oversupply has triggered a price war that startups—still in capital-intensive industrialization phases—simply cannot match.
“Developments in the global battery market, combined with the capital requirements inherent in an early industrialization phase, have made this journey far more challenging than anticipated,” stated Ann Christin Andersen, Chair of Morrow’s Board, in the press release.
The capital intensity trap and industrialization challenges
Battery manufacturing requires enormous upfront capital before generating revenue. This capital intensity creates a vicious cycle: startups need to demonstrate production capability to attract customers, but need customer commitments to justify the investment in production capacity. Meanwhile, the cash burn rate accelerates as facilities come online but before they reach profitable utilization rates.
The investment climate has shifted dramatically since Morrow’s founding in 2020. Interest rates have risen substantially, making debt financing more expensive. More critically, the venture capital and growth equity markets that fueled the battery startup boom have become far more selective, demanding clearer paths to profitability and faster timelines to positive cash flow.
Morrow’s experience highlights what industry observers call the “industrialization valley of death”—the treacherous period between pilot production and commercial scale. This phase requires the most capital precisely when technical risks remain high and revenue is minimal. Delays in industrialization, which Morrow acknowledged in its statement, compound the problem exponentially.
Competing against Chinese scale
Chinese battery manufacturers benefit from integrated supply chains, lower labor costs, and substantial government support that Western startups cannot match. CATL, BYD, and other Chinese giants have achieved economies of scale that allow them to price aggressively while remaining profitable. The vertical integration of China’s battery ecosystem—from lithium mining and refining to cathode production and cell manufacturing—creates cost advantages at every stage of production that take decades to replicate elsewhere.
European and North American startups face a choice: compete on price against Chinese manufacturers (nearly impossible) or differentiate on technology, sustainability, or supply chain security (difficult to monetize at sufficient premium). Morrow attempted the latter strategy, emphasizing European production, sustainable practices, and supply chain independence for defense and critical applications. However, the premium customers are willing to pay for these attributes has proven insufficient to offset the cost disadvantage, particularly when Chinese manufacturers have also begun improving their own sustainability credentials and technological capabilities. The result is a narrowing window for Western battery startups to establish viable business models before running out of capital.
What’s at stake for European battery strategy
Beyond the immediate financial losses, the collapse raises questions about Europe’s battery manufacturing strategy. The European Union has made battery production a strategic priority, viewing it as essential for electric vehicle adoption, energy storage, and reducing dependence on Asian supply chains. Yet if well-funded, technologically credible companies like Morrow cannot survive, the viability of Europe’s battery ambitions comes into question.
“We firmly believe that the underlying technology and assets retain significant long-term value,” Morrow’s Board stated. “We are confident that the estate, under the right conditions and with the right ownership, can be further developed into a viable and important contributor to modern industry.”
The Agder District Court will appoint a bankruptcy administrator to assess Morrow’s assets, which include the Arendal production facility, intellectual property around LNMO and graphene-enhanced battery technology, and established relationships with defense and industrial customers. The question is whether a buyer can succeed where Morrow failed—or whether the fundamental economics of battery manufacturing in Europe remain prohibitively challenging without substantially greater public support or protected markets.
For the broader battery startup ecosystem, Morrow’s collapse serves as a reminder: innovative technology and strong partnerships are necessary but not sufficient. In today’s oversupplied, capital-constrained market, the battery industry’s future may increasingly belong to either the established giants with deep pockets and economies of scale, or to startups that can reach commercial production before their capital runs out—a window that evidently can close rapidly.
spencer baker
@spenbaker
Based on the 8-K on May 5 and subsequent analyst comments, the timeline for Honor qualification has become clearer.
We are currently in the final validation phase.
Enovix is on track to be fully qualified by Honor in the coming months.
The PR confirmed that Honor and Enovix have agreed on a new “silicon-specific qualification framework.” This is a custom testing protocol that replaces standard industry tests (like the 0.7C accelerated cycle test) which don’t fit silicon’s unique profile. While this new framework “may take some time to complete” according to BofA, it provides a finalized, clear path to qualification.
My guess is qualification gets confirmed between July and September with mass production in the latter part of 2026.
Previously there was fear that Enovix would have to start over with a new battery formula to meet legacy testing standards. The May 5th update is a big positive because:
1. Enovix does not need to develop a new battery recipe; Honor has accepted the current AI-1 performance and modified the test to match how silicon actually works;
2. By agreeing on the rules of the game (the framework), the chance of a surprise failure or rejection is lowered to almost zero.
10:56 AM · May 7, 2026
Stingraystev
Wolfe invested $2 million across nine companies in this emerging hardware sector, favoring those with sub-$5B market caps, aiming for exposure across the wearable device stack — wireless, audio, optics, and power. Enovix represents the POWER component.The Steve Bakos Connection
Enovix just hired Steve Bakos as SVP Worldwide Sales — who came directly from Infineon Technologies — the #1 ranked stock in Josh Wolfe’s lifecording basket. That’s not coincidence. Bakos came from the exact ecosystem Wolfe is betting on.
Stingraystev
Today’s Enovix earnings report reinforced that the company is steadily moving from a development story into a real commercialization story. Revenue grew strongly, margins improved meaningfully, smart eyewear batteries officially entered production, and defense and drone demand continues to expand with a growing pipeline. Most importantly, management showed continued progress on the manufacturing side, with laser dicing yields improving toward levels that increasingly support scalable production. While the market remains impatient about smartphone qualification timing, the call made it clear that Enovix is no longer dependent on a single future catalyst,it is now building multiple real world revenue streams while continuing to improve the core manufacturing process that could eventually unlock much larger markets.
12:43 AM
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BarryMacCockiner
12:47 AM
@Stingraystev I just want a little firmer guidance, like he did with the smart glasses batteries expected order to be in the millions next year. That’s good news that he should be dribbling out more of, especially with smart phones!!! Just a goddamn hint, Raj!
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Stingraystev
12:49 AM
@BarryMacCockiner Fair point, but today’s call actually felt more confident than prior quarters. The smart glasses commentary was a big deal because it showed they’re finally talking in real commercial volume terms instead of just ‘engagements’ and ‘qualifications.’ My guess is Raj is being extremely careful with smartphones because once you start hinting at timelines or customers in that market, expectations go nuclear. Still, the fact they’re discussing improving yields, production ramps, and multiple revenue verticals at the same time tells me things are moving forward behind the scenes
6
Enovix (ENVX) Q1 2026 Earnings Transcript
By Motley Fool Transcribing – May 13, 2026 at 6:16PM EST
Date
Wednesday, May 13, 2026 at 5 p.m. ET
Call participants
Chief Executive Officer — Raj Talluri
Chief Financial Officer — Ryan A. Benton
Takeaways
Revenue — $7.6 million, up 49% year over year and above the guidance range, driven primarily by shipments to Korean military contractors.
Non GAAP gross margin — 26.3%, marking six consecutive quarters of positive gross profit on both GAAP and non GAAP bases.
Non GAAP operating expenses — $30.8 million, attributed to investment in customer qualification, research and development, and smart eyewear production readiness.
Non GAAP loss from operations — $28.8 million, better than the guided $29 million-$32 million range.
Non GAAP net loss per share — $0.14, at the favorable end of guidance despite higher interest expense from the 2030 convertible notes.
Adjusted EBITDA — negative $20.3 million, roughly flat year over year.
Liquidity — $5.8 billion in cash, cash equivalents, restricted cash, and marketable securities at period end.
Free cash flow — Outflow of $36.3 million, increased from the prior year, primarily due to semiannual interest payment on convertible notes and higher inventory levels in Korea.
Capital expenditures — $3.2 million during the quarter, below guidance based on the timing of certain payments, the majority expected in Q2.
Manufacturing yields — Most production zones are approaching or exceeding 90%; zone 1 dicing yields are approximately 80% with continued improvement noted.
Smart eyewear — Commenced commercial production and shipments of the A1 battery for a lead customer’s reference platform, with ramp expected in the second half; 50,000 units targeted for delivery in 2026 and “millions” forecasted for 2027.
AI-2 platform — Engineering samples of AI-2 for smart eyewear produced, delivering more than 20% higher volumetric energy density versus AI-1, with initial sampling to customers already underway.
Smartphone qualification — Alignment reached with Honor and a second OEM to adopt a new silicon anode-specific framework, replacing the legacy 0.7 C test with a real-world 0.2 C discharge protocol; qualification cycle at Honor is over halfway completed.
Drone and defense pipeline — Global pipeline for products manufactured in Korea exceeds $130 million, with drone-related opportunities accounting for over 60% of that figure.
MX platform launch — MX1B01 drone cell launched with 360 Wh/kg energy density, manufactured in South Korea, and actively demonstrated at the Michigan Defense Expo and other industry events.
Q2 guidance — Projected revenue between $8 million and $9 million; non GAAP loss from operations between $29 million and $32 million; non GAAP net loss per share between $0.13 and $0.17; capital expenditure payments of $9 million-$13 million.
Share repurchase program — Authorization approved, but no shares repurchased as of the earnings call.
Senior leadership addition — Appointment of Steven Bakos as Senior Vice President of Worldwide Sales, bringing more than 35 years of semiconductor and account sales experience.
Manufacturing process advancement — Ongoing transition to a hybrid laser/mechanical dicing strategy aimed at improved throughput and reduced cost, with full mechanical dicing targeted for next year’s demand.
Risks
Free cash outflow of $36.3 million increased due to timing of interest payments on convertible notes and rising inventory levels, indicating higher cash consumption in the near term.
Qualification protocols for smartphones shifted from 0.7 C to 0.2 C/0.1 C tests, which “may take a little bit longer to do 0.1 C, 0.2 C discharge because the time it takes to qualify is a little longer, at least on the first launches.”
Smartphone battery shipments in the current year expected to be “much lesser” due to overall lower industry volumes, with normalization not expected until higher-volume ramps in coming years.
The need for further engineering work and capital outlay, including $9 million-$13 million projected Q2 capital expenditures and ongoing improvements for next-generation manufacturing dicing, points to continued investment requirements before full-scale commercialization.
Summary
Enovix (
ENVX
+4.59%
) reported revenue growth of 49% year over year, led by shipments to Korean military contractors and progress in manufacturing readiness across multiple production zones. Strategic alignment with key smartphone OEMs removed the legacy 0.7 C test requirement in favor of a 0.2 C protocol, positioning Enovix for broader silicon anode battery adoption. The AI-2 platform achieved more than 20% higher volumetric energy density, and commercial production began for the smart eyewear market, with initial deliveries commencing and a pathway to larger scale next year. The MX1 drone cell, manufactured entirely in South Korea, launched with technology designed to meet demanding defense and industrial use cases, and the global pipeline for Korean-manufactured products grew to over $130 million. Enovix maintained robust liquidity, guided for further revenue gains in Q2, and continued prioritizing disciplined capital deployment and operational expansion.
Removal of the legacy 0.7 C smartphone discharge test was described as a “gating item” whose elimination led to the adoption of protocols that better reflect “real world usage” and enabled easier qualification for silicon anode batteries.
The pipeline for Korean-manufactured drone and defense products increasingly targets applications where supply chain security and NDA compliance provide a competitive edge, distinguishing Enovix from peers relying on third-party manufacturing.
Engineering progress toward a hybrid and ultimately mechanical dicing process is expected to further enhance production throughput and decrease costs over the next year.
Leadership described the $5.8 billion cash position as providing “substantial liquidity to execute on our operating plan to support commercial scale up, and to pursue strategic opportunities.”
“AI” platforms and MX platforms are described as mutually reinforcing, sharing technology, supply chain capabilities, and commercial infrastructure. Management stated, “We are increasingly seeing benefits flow in both directions with the AI platform leveraging our Korea manufacturing strength and the MX platform benefiting from our silicon expertise and global commercial reach.”
Capacity expansion in Korea leverages a recently acquired 300,000-square-foot facility, providing room for sequential scale-up as commercial demand materializes.
Industry glossary
0.2 C / 0.7 C test: Battery discharge protocols, with “C-rate” referring to the rate of charge or discharge relative to a battery’s capacity; 0.2 C is closer to typical smartphone usage while 0.7 C is a high-stress, accelerated test used for graphite-based cells.
Wh/kg (Watt-hours per kilogram): Metric for gravimetric energy density, measuring the amount of energy a battery delivers per unit mass.
NDA compliance: Meets U.S. National Defense Authorization Act requirements for sourcing and manufacturing, critical for defense-sector supply chain eligibility.
AI-1/AI-2 platform: Enovix’s generations of 100% silicon anode batteries, targeting smart devices and wearables, with AI-2 offering a significant volumetric energy density increase over AI-1.
MX platform: Enovix’s silicon-enhanced battery suite designed for high-performance industrial, drone, and defense applications, with product names such as MX1B01 for specific cells.
Raj Talluri: Good afternoon, everyone. Thank you for joining us. This quarter marked another meaningful step in Enovix’s transition towards commercialization and scale. We advanced across the areas we believe are most important for long term value creation, customer engagement, commercial deployment of our silicon anode batteries, and manufacturing readiness. I am very excited to share that in the smart eyewear market, commenced commercial production of our A1 battery for our lead customer’s reference platform and have multiple customers in the process of launching smart eyewear products. Initial shipments are underway, production expected to ramp through the second half of the year. We believe this validates our ability to manufacture 100% silicon anode architecture at commercial scale.
On smartphones, we align with Honor, an updated qualification framework designed specifically for silicon anode batteries. This framework, which includes revised specifications and testing protocols, better reflects real world usage conditions. We are pleased to have also aligned our second smartphone OEM on the view that they too will need to adapt a similar testing framework in order to get their products to market on a competitive timeline. Beyond these lead customer engagements, we are in active dialogue with several additional leading OEMs regarding silicon anode battery qualification standards. We are encouraged by the constructive cadence of our discussions with these OEMs as we work towards future qualifications and commercialization programs.
Importantly, we believe we are doing the hard work now that will enable our future OEMs to roll out their silicon anode solutions. More rapidly. The principal structural mismatch in qualification has now been addressed to align with silicon anode performance while maintaining and in some respects increasing qualification rigor. Cycle life testing at our lead customer for batteries that we shipped at the beginning of the year is progressing under the updated protocols with the results approaching required thresholds. The deep partnership and technical engagement we are seeing with multiple customers in the smart market, reinforces our belief in the industry’s interest in high performance silicon anode battery solutions.
We are encouraged to see growing demand across our drone, defense, industrial applications, securing new customer design wins during Q1 2026 in each of these markets with deployments expected in 2027. Our global pipeline for products manufactured in Korea now exceeds $130 million. with the majority driven by rapidly expanding drone applications where demand for high performance battery solutions continues to outpace the available supply. This creates an opportunity for an additional scaled high performance supplier. We believe Enovix is positioned to emerge as that differentiated supplier this rapidly expanding market. We continue to improve manufacturing execution at Fab 2. Yields in most production zones are now nearing or exceeding 90%.
Zone 1 dicing, a key throughput driver, is delivering step level yields of approximately 80%, demonstrating continued progress with our laser based equipment. We recently appointed Steven Bakos as senior vice president of worldwide sales to support Samira Naraghi our chief business officer. Steven brings more than 35 years of global semiconductor sales leadership from companies such as Infineon where he served as a vice president of corporate account sales for large global accounts, including Apple. This quarter, revenue was $7.6 million, driven by Korean military contractors above the high end of our guidance range and up 49% year over year. Non GAAP gross margin was 26.3%.
Now I will walk through each of these areas in more detail, starting with manufacturing. On that front, I want to give you an update on our zone 1 dicing which is our current throughput bottleneck. Since I joined to improve the throughput of zone 1, we have been working on a faster, cheaper way to dice our coated rolls. We have been making great progress, Last week, I received a video from our equipment vendor showing this in action. Rather than trying to describe it with another chart, let me just show you the actual process. What you saw was our mechanical dicing system processing silicon anode strips directly from coated rolls.
By implementing a hybrid dicing configuration strategy, that combines both laser and mechanical dicing approaches. I continue to be encouraged by the substantial progress our global operations and advanced manufacturing equipment teams are making in this novel area for silicon anode batteries. As we mentioned on the last call, legacy smartphone qualification protocols originally developed around the graphite-based batteries and relied on a 0.7 c discharge requirement. That standard can artificially stress silicon anode cells at discharge rates far above real world smartphone usage which typically remains well below 0.2 C. The consequence was important. Silicon live testing under this framework systematically understated a silicon anode battery’s longevity.
We have aligned with honor on a new silicon anode specific qualification framework. The updated framework prioritizes a version of the 0.2 c cycle test that commenced in Q1. This methodology better reflects real world usage for silicon anode batteries while enhancing the rigor and visibility into performance. We are seeing broader industry alignment on silicon anode specific qualification standards. Our second smartphone OEM has joined our lead customer removing the 0.7 C test from their list of hard requirements and is now progressing towards an updated framework similar to our lead customer. Discussions with several additional top OEMs are ongoing. We expect broad adoption of similar silicon anode specific qualification approaches over time.
With this framework now established, the plan with Honor is a targeted system level deployment in the second half of the year to confirm infield performance ahead of the broader commercial launch in 2027. Importantly, we also recently received the battery form factor for their next generation device to support readiness for the next major product launch. Our commercial strategy centers on 2 complementary technology platforms that address large and, in some cases rapidly expanding market opportunities. AI, short for Artificial Intelligence Class, is our flagship 100% silicon anode platform. it is targeted at smartphones, and smart eyewear markets where volumetric energy density is a key requirement. Smartphones represent the largest battery market opportunity for Inovix.
However, smart eyewear is emerging as 1 of the fastest growing new device categories. We think that the smart eyewear battery market opportunity could exceed $1 billion by the end of the decade. More broadly, the AI platform is applicable to virtually any space constrained device requiring high energy density and long cycle life including future applications in wearables, computing, industrial, EVs, and humanoid robotics. Previously, we acquired an established business producing graphite anode based products. These products are in production today, generating revenue in defense, drone, and industrial markets through our Korea facility. We have been able to leverage these capabilities in combination with our silicon anode technology know-how to create high performance MX silicon-enhanced platform.
Our initial target markets for MX represent more than $4 billion in opportunity including approximately $2.4 billion in drones and $1.8 billion in defense technologies beyond drones. These applications prioritize performance and supply chain security with a greater focus on gravimetric energy density. Over the longer term, we believe the MX platform is also well positioned for adjacent markets including robotics, eVTOL, healthcare devices, transportation, agriculture, and broader industrial applications. The first product Enovix is launching on this platform is MX1, a ruggedized, drone cell design, requiring rapid discharge and high gravimetric energy density. I want to highlight something important here. These are not separate bets. They are mutually reinforcing platforms sharing technology, supply chain capabilities, and commercial infrastructure.
We are increasingly seeing benefits flow in both directions with the AI platform leveraging our Korea manufacturing strength and the MX platform benefiting from our silicon expertise and global commercial reach. Alongside qualification progress, our R&D efforts continue to advance the platform. This quarter, we produced the first engineering samples of AI-2 for smart eyewear, delivering greater than 20% higher volumetric energy density compared to AI-1. This represents a meaningful architecture driven improvement. Potentially enabling product categories that require significantly more power within highly constrained form factors. We have achieved this improvement through 2 primary drivers, reducing inactive material to improve packaging efficiency and increasing the cathode voltage.
Together, these advances increase energy density within the same footprint and further demonstrate the advantages of our 100% active silicon anode architecture. We believe this represents the first of many future advancements unlocking the full energy potential of our 100% active silicon anode architecture on the future AI product road map. Display equipped smart eyewear is expected to become a rapidly growing battery market. And we believe increasing power requirements create a strong fit for our technology. Smart eyewear also represents an attractive initial commercialization opportunity for our silicon anode platform. Qualification cycles are generally shorter, more flexible, and durability requirements are lower, and the market is in the early adoption stage.
Customer sampling of AI-2 is planned for later this quarter, We have already received initial sampling orders and engagement commitments from several leading smart eyewear companies. The 20% energy density improvement achieved with AI-2 is important, not only for smart eyewear, but also because similar gains to the future smartphone batteries, could materially extend our technology advantage. The current AI-1 smartphone battery delivers 935 watt hours per liter has been independently validated against graphite and silicon doped alternatives. We believe this positions Innovix with a meaningful competitive advantage in high energy density mobile applications.
Competing approaches remain largely focused on conventional graphite based designs with incremental silicon additions, These architectures continue to face swelling constraints that limit long term performance and energy density improvements. In contrast, our architecture is designed at a 100% active silicon anodes which we believe provides a substantially higher long term scaling opportunity. Let’s talk about our second platform, MX. This week at the Michigan Defense Expo, we formally launched MX1B01, a drone battery cell delivering energy density of 360 watt-hours per kilogram positioning us competitively within the high performance drone battery market. We achieved this performance through targeted silicon content enhancements leveraging an already proven manufacturing platform.
MX1 is designed for applications requiring extended flight time high discharge capability for power intensive missions, and a secure supply chain. We believe the product compares favorably to similar leading high density solutions currently available in the market and offers a material cycle life advantage. We are manufacturing these cells from our South Korea factory which has supported defense customers for years, and our commercial focus is on drone manufacturers globally as well as their packaging partners. Following the Michigan Defense Expo, we plan to showcase MX1 at 11 additional conferences around the U.S. and Europe over the next 2 quarters as we continue building customer engagement and commercial pipeline activity.
This slide shows how we see the MX platform evolving beyond the initial MX1 launch. Demand for high performance drone battery supply continues to exceed the currently available western capacity, which we believe creates a meaningful opportunity for Enovix. These applications prioritize performance, reliability, and supply chain security supporting differentiated positioning relative to commoditized consumer battery markets. While drones are key near-term focus, we have also established product offerings for subsea, munitions, and industrial applications expanding the MX platform across multiple high performance end markets. Our Korea and Malaysia manufacturing footprint directly addresses defense supply chain requirements. Backed by years of production history supporting major contractors and deployed programs. A key structural advantage for Innovix is vertical integration.
Because we own our manufacturing operations we are not sharing economics with third party contract manufacturers. Which we believe supports both competitive pricing and attractive long term unit economics as volume scales. As product competitiveness becomes increasingly established, the gating factor becomes commercial conversion which is why we recently appointed Steven Bakos as Senior vice president of worldwide sales, who brings more than 35 years of global semiconductor and industrial sales leadership experience and will help us build the commercial infrastructure required to support growth. Looking ahead, MX2, targeted for 2027, with the goal of reaching 400 watt hours per kilogram.
Over time, we intend for MX to evolve into a broader platform strategy spanning multiple product formats and defense and industrial end markets. Now I will turn it over to Ryan to walk through our financial results. Ryan?
Ryan A. Benton: Thanks, Raj. Our first quarter results reflect disciplined financial execution, alongside continued commercialization investment. First quarter revenue was $7.6 million above the high end of our guidance range, up 49% year over year. These are largely batteries deployed in active programs with repeat demand. Non GAAP gross margin was 26.3%, our sixth consecutive quarter of positive gross profit on both a GAAP and non GAAP basis. Non GAAP operating expenses were $30.8 million reflecting continued investment in customer qualification completion, research and product development, and smart eyewear production readiness.
Non GAAP loss from operations was $28.8 million better than the guidance range of $29 million to $32 million Non GAAP net loss per share was $0.14 at the better end of the guidance range despite higher interest expense from the 2030 convertible notes issued last year in Q3. Adjusted EBITDA was negative $20.3 million roughly flat year over year. We ended the quarter with approximately $5.827 billion in cash, cash equivalents, restricted cash, and marketable securities. We believe this provides substantial liquidity to execute on our operating plan to support commercial scale up, and to pursue strategic opportunities from a position of strength.
Free cash flow was an outflow of $36.3 million, an increase from the same period a year ago primarily driven by timing related items including the semiannual interest payment on the 2030 convertible notes working capital movements primarily higher inventory levels in Korea to support planned shipments. Capital expenditure payments were $3.2 million in Q1. Below guidance due to the timing delay of certain payments, the majority of which we expect to be paid in Q2. Turning to Q2 26 guidance. Revenue is expected in the range of $8 million to $9 million reflecting continued growth in defense and industrial shipments and initial smart eyewear revenue as deliveries to our lead customer begin.
Non GAAP loss from operations is expected between $29 million and $32 million. Non GAAP net loss per share between $0.13 and $0.17 and capital expenditure payments are projected in the range of $9 million to $13 million which includes the aforementioned deferred payments as well as initial payments for the investment to support capacity expansion in Korea. Last quarter, we approved a share repurchase authorization to provide additional capital allocation flexibility. We have not made any purchases under that program. Our capital deployment priorities remain unchanged. Qualification completion, scaling smart eyewear and defense production capabilities and selectively pursuing strategic opportunities with a high bar on strategic fit and return. With that, I think we are ready to take questions.
Operator?
Operator: We will now begin the Q and A session. Please note that this call is being recorded. Before we go to live questions, we are going to read the 2 most highly voted questions submitted by shareholders ahead of this call during the call registration. The first question is, previously, management has discussed multiple pathways to achieve final smartphone qualification targets. Could you elaborate on which of these pathways currently appears most promising?
Raj Talluri: Yeah. Thank you for the question. And thank you all for listening. Of the pathways we discussed, as I mentioned in the prepared remarks, we have now aligned with Honor at a combination of different pathways that we could use. The 0.7 C legacy test requirement, that is been mainly for based on graphite batteries. We have aligned with our customers that is not a must have requirement, so it is been removed as a gating item. We are now working on a slightly different 0.2 C test, which better reflects the real world usage of the smartphone. And that is been prioritized now.
And not just with honor, but many of our other lead customers also agreed to the same thing. In general, I feel like smartphone market now people are realizing that as silicon batteries become more and more popular, we should they should really change the requirements that are in the market. That have been used mostly for graphite. So it is really nice, really great result. I am really pleased with my team being able to convince them. Now the point to see test is more than halfway done at our customer. And it is it is continuing to go and we are tracking it.
Operator: The second question is for your AI-2 When will the samples be submitted to customers so that testing can begin?
Raj Talluri: Yeah. As I mentioned in the remarks, that we have engineering samples now inside, and they look really good in terms of the 20% energy density increase from AI-1. Great achievement by the R&D team. You know, harnessing the full potential of silicon. And these will continue to get better over time. But these samples, we expect to sample this quarter. To our customers, and quite a few people have actually expressed interest in that, and we got a few sample batches out as of now. Thank you.
Operator: We will now go to the queue. If you would like to ask a question, please use the raise hand feature on your screen. If you have dialed in via phone, please use star 9 to raise your hand and star 6 to unmute. Questions will be answered in the order they are received. Please ask 1 question and 1 follow-up question at most. We will now pause for a moment to assemble the queue. Our first question will come from Mark Shooter with William Blair. Your line is open. Please ask your question.
Analyst (Mark Shooter): Thank you. Hi, guys. Congrats on the progress. My first question is just focusing in on Honor a bit. I saw in the press release that you have, some field testing looking at, about second half, right, is when you are targeting. So I am wondering if you could give us an updated understanding of what unit volumes may be for that field testing with Honor. And if successful, do you have a better view on what a on a ramp would look like in 2027?
Raj Talluri: Yeah. So again, as I mentioned, now we have a you know, test methodology that we aligned with Honor. So we are in the middle of doing that. And the next big step is to actually put the battery inside an existing phone for which, you know, we made this custom size cell. it is hard to predict the number of units, and they will be small it will be initial test just to make sure that everything is smooth and limited launch maybe. But the real volume will be, you know, in 27.
But we more importantly, we got the size for that particular battery that is gonna be launched in 2027, and we are now working on how to make that battery after the feed testing is complete.
Analyst (Mark Shooter): Okay. Great. Thanks for the color. Switching gears into drones, which is very interesting opportunity, and congrats on the silicon carbon composite, you know, that mixed graphite cell. At 360 watt-hours per kilogram, that is gonna put you, you know, well in the running against, the current peer set. So I am wondering if you could speak to maybe some of the customers that you are engaged with in sampling and say you win all that business today, everyone you are engaged with. Do you have an idea of what those call times look like and your current unit volume and revenue capacity?
Raj Talluri: Yeah. Firstly, thank you for that comment on the drone cell. We are also super proud of the engineering team that came up with it in a very short order, particularly because we have a well manufacturing facility that we own, we were able to quickly make that. You know, the product actually is extremely competitive with what is in the market today. And is made totally within our factories. it is not contract manufactured. Actually, I have the fact, a battery cell here with me. You know, we have a bunch of these cells now. So we there is a lot of interest.
And I just got a call from our sales team who is at the Detroit you know, drone show right now about the tremendous interest they are seeing. Because this is also a NDA compliant cell, which is actually you know, big deal for, many of our customers. The go to market of this works this way. Typically, there are people who take this and put them in packs. And put the BMS around it and the system around it, and that goes into multiple drone makers.
So it is hard to call the volumes right now, but the market is so fast and growing really fast that we think that the cycle times, the qualifications time will be, you know, shorter than things like smartphones because they have such demand. And also a cycle life does not have to be that long in these. Our cell goes to 300 cycles. But even shorter cycles are okay in some of these markets.
Ryan A. Benton: And maybe I will I will chime in. You know, Mark, you asked about volumes. You know? Again, we have talked about in the CapEx forecast in prepared remarks. We are already spending dollars to add equipment to 1 of the existing buildings in the Nonson facility. And, you know, 1 of the great strengths advantages that we have sitting on our balance sheet is we have multiple empty buildings in that facility as well. So we have you know, numerous stages of additional expansion capacity there, and we are just gonna do that in a methodical way as demand presents itself.
Analyst (Mark Shooter): that is great. Thanks for the color, guys.
Operator: Your next question will come from Colin Rusch with Oppenheimer. Your line is open. Please ask your question.
Analyst (Colin Rusch): Thanks so much, guys. You know, could you talk a little bit about the mix of silicon material that you have in the new drone batteries? And the pathway from 360 to 400, how much of that is being driven by increased thickness or, you know, different form factor or increased concentration of silicon in the in the anode.
Raj Talluri: Yeah. Great question, Colin. So when we did this 1, we did it was to there is an existing requirement for a cell that in the market today that many of the customers wanted us to provide something that is with the fully NDA compliant, you know, made within our factories. So we made that 1, and we quickly got into that performance. Actually, it performs really well. The cycle life is really good and the capacity holds. We have about 60% SIC in that cell. But we now believe that we can get that to much higher percentage Because, you know, in this market, some amount of swelling is okay.
Because it is inside a drone, and you could put pressure and put it in there. it is not a space constrained situation like a like a smartphone. And, also, the discharge rate and the pulse discharge, and the number of cycles are variables we can keep tuning. You know, we mentioned know, 400 watt hours per liter as something that we could produce. I believe we can go much higher than that. By just making the right trade offs between cycle life and rate and the amount of swelling that allow You know?
So I think the good news is we have been working on silicon for a long time, so we know exactly what electrolytes work well with silicon. We are working with graphite for a long time in non sun. We have that know how. And we have a factory that is been supplying for difference for a long time. So our quality of the products that we actually supply to defense is very, very high bar, and that factory is actually qualified for that. So that is why I think that, you know, you will see a pretty competitive roadmap from us. For this market very quickly.
Analyst (Colin Rusch): Great. And then, you know, looking at the laser cutting, I did just wanna understand kind of the cadence of learning cycle on yield improvement and how we should think about the engineering work that you are doing and how quickly you can implement that to start getting a little bit better, you know, output on the overall facility.
Raj Talluri: Yeah. So as I mentioned, from last quarter to this quarter, we have improved our yield across multiple zones. You know, well into the 90% range now in most of the zones. The laser dicing is in the kind of the 80% range, but that is improved quite a bit from last time. But as you guys saw in the video, we have been working on this for a while, and today, I thought was a good time to show you a combination of laser and mechanical dicing that actually cuts much, much, much faster and much cleaner.
When you laser dice, there are also some challenges we have been working on for a while, which is, you know, how to get to the yield and the throughput so on. it is an expensive way to do things. So we have always you know, right when I started we have been working on a different way to actually do this. You saw the mechanical Dyson now. So we have enough lasers, and we have enough throughput to meet the demand for this year. And we will get the mechanical dicer. Our plan is to get it online this year. For the next year’s demand, we can use a mechanical dicer with some combination of laser finishing it up.
So really exciting results. So hope you guys saw that video also the throughput that we can produce with that.
Analyst (Colin Rusch): Okay. Thanks so much, guys. Thanks, Colin.
Operator: Your next question will come from Jeffrey Osborne with TD Cowen. Please unmute your audio and ask your question.
Analyst (Jeffrey Osborne): Yeah. Thank you. Maybe just a quick 2 questions, but 1 quick follow-up on Collins. Can you get to 90% yields without that machinery in place, or do you need to add the new machinery to get there And that is more of like a 2027 event getting to 90%.
Ryan A. Benton: Maybe I will take It is. Yeah.
Raj Talluri: Yeah.
Ryan A. Benton: I think we are capable of getting a nice 90% yield. But, again, it goes hand in hand with throughput. I mean, again, you saw the video. Really, the mechanical dicer is just able to operate so much faster. And so ultimately, this you know, I am the finance guy. Ultimately, it is it is about cost. We just think it is the most economical way eventually in some of the subprocess steps to operate.
Analyst (Jeffrey Osborne): Perfect. Thanks for that. And cost of the machines. Right? These are much it is a less expensive way to get throughput.
Raj Talluri: Yeah. Perfect. And my 2 questions is 1, Ryan, I was wondering if you can update us on the M&A pipeline. I think you have been out there searching for a couple quarters now. And then just, Raj, a clarification. You mentioned providing packs to honor to put in a phone, small quantities in the second half of the year, but then you mentioned something about getting a second design. It was unclear. Is there a second SKU that they have given you, or is the SKU that they gave you they intend to produce in 2027? I am just trying to get a sense of your relationship as deepening with them.
And they are giving you a glimpse of what they intend to commercialize after the first product launch. it is it is it is exactly the latter. So we actually have a SKU that will launch in 2027. So which is actually a fairly large deal. And shows the relationships we have with them.
Analyst (Jeffrey Osborne): And then in terms of the packs to honor the quantities, any comments on that?
Raj Talluri: It will be small volume. Again, it will be, just a test and make sure that the system level stuff works okay, and we get small initial launch And I think that is you know, again, that is fine with us to just to make sure everything is good before we get into high volume.
Analyst (Jeffrey Osborne): Does that like, thousands, friends, and family and stuff?
Raj Talluri: that is that is probably what it that is probably what you should think of.
Ryan A. Benton: And then on the first question in terms of the M&A pipeline, so I am I am I am really pleased with the pipeline that we have multiple opportunities that we are pursuing. Again, as we as we said and repeated time and time again, we are gonna be disciplined. So it has to meet a strategic fit. We are gonna be disciplined on price. So it is fair to say that we have we have looked at quite a few opportunities that we just did not like the price tag, and we have moved on from. That we are I think we are we are excited about some of the opportunities we are pursuing.
But, again, there are not going to waver. We think we are gonna be disciplined stewards of the capital and make sure it makes sense, and it is something that Raj really sees as strategic fit and benefit. And it is something that I can be here on an earnings call and be proud of the price we paid for.
Analyst (Jeffrey Osborne): Perfect. Thank you.
Operator: Your next question will come from Ananda Baruah with Bank of America. Your line is open. Please ask your question.
Analyst: Hi. Thanks for taking my questions. Raj, I wanted to ask the first question on smart eyewear batteries. I think the press release says that you expect 50 thousand units in 2026. How should we think that scales as we head into next year? How should we think about the revenue progression from smart Eyewear over the next few years?
Raj Talluri: Yeah. So the 50 thousand is, you know, this year. Firstly, I wanted to say that you know, with the way where the yields are and the throughput is and the way it is working, we are now able to manufacture this cell in our lines. The customer will deliver to the customer, they are testing them, it looks good. So firstly, that is, I think, a great result. We you know, as I mentioned, it is a huge market growing rapidly. It should be in the millions next year. it is hard to tell exactly how much.
We have sampled to many different customers now because what we have is a battery that really makes the product, you know, because the energy density you know, right now, as you know, many glasses out there, they do not last the whole day. So this 1 actually continues to improve on that. And now that is why we decided to launch the next product using our AI-2 in that space first. You know, because the market was really asking for even more because they are it just it just very difficult to have the product last all day without that. So we do think that the first product will launch this year.
And next product, you know, AI-2, we are gonna sample this summer, and that will go into production next year. So we expect it to be in the millions next year.
Analyst: Okay. Thanks for the details there. For a follow-up, can I ask Ryan as you ramp the smartphones later this year and next year, the smartphone batteries, how does that impact gross margin? I think some OpEx might move into COGS. So can you just help us understand how we should think about gross margin progression as smartphones become a bigger part of the mix?
Ryan A. Benton: Yeah. Certainly. So certainly, as we as we ramp the smart and the smartphones, you are gonna see some change in and you will see some of the costs right now that we have in operating expense will move up above the line into the cost of goods sold line whenever you think about our cost structure, the majority of our cost of sales is materials. So it is it is really about continuing to drive the bill of materials cost down, and those will be materials that we purchase for those for those orders as we prepare to ship them.
So that is the vast majority of our COGS So when you talk about direct labor, variable overhead, and even a fixed set and fixed overhead to some extent. Although we have some you know, material costs as it relates to the cost of the factory, as we get to a decent amount of volume. It ends up being the very small percentage of our of our costs.
Analyst: Okay. Thanks for all the details. Appreciate it. Yep.
Operator: Your next question will come from Derek Soderberg with Cantor Fitzgerald. Your line is open. Please ask your question.
Analyst (Derek Soderberg): Yeah. Hey, guys. Thanks for taking my questions. I was wondering if there is any way you can segment that $130 million Korea pipeline drones and defense opportunities, how much of that is sort of legacy RouteJade and how much of that is drones?
Raj Talluri: Firstly, this is future looking revenue. Not right. So it is actually, a lot of it is new designs that we are that we are working with customers to get. And so in some sense, some of it is continuation of the defense business that RouteJade had. But majority of it is actually new stuff that we are that we are winning. And drones is, like, you know, over 60% of that.
Analyst (Derek Soderberg): Got it. that is helpful. And then just curious on the NDA compliance piece. I was wondering how unique that is. I know there is a couple others that have that, but not too many at this point. You know, might it be difficult for others to sort of achieve that over the next couple years? And then, you know, within drones, what kind of drones are you getting interest in? You know, there is a wide variety of you know, sea drones, air drones, heavy and light. Where do you guys think you can build a nice business in drones?
Raj Talluri: Yeah. So a NDA compliance is actually not that easy to achieve because there is multiple elements to that on the way the cost of the things that are sourced, what percentage of them have to be from this and countries, and then where the cells are actually manufactured. So for us, you know, we manufacture them in Nonsan, South Korea, which is a non-free country. So which is very good there. And then most of the material we have in there majority of it is actually not sourced there either from a few countries either. So in that sense, it is a big advantage for us and that we own our factories and we have the material.
You know, in terms of drones, we are seeing it in, like, training, you know, public surveillance, inspection, public safety, multiple markets like that. What varies between these drones is, you kind of like a discharge rate, then it also depends upon how many cycles. The first product we made is, as I showed, you know, 300 cycles. High discharge rate, this 1 that I talked about. But we have the technology, and we have the know-how, and we have the factory now to make different products optimized for slightly different lesser cycles, but more energy density, and so on. So we will have a roadmap of products addressing various parts of the market.
You know, as we as we start building out that roadmap.
Analyst: it is an opportunity that is really grew very fast and came quickly. You know?
Ryan A. Benton: And I will touch on my apologies if you already mentioned it, but, obviously, we have got a long history of subsea drones. And so that is something that I think will continue to be a strength for us as well.
Analyst (Derek Soderberg): Perfect. Thanks, guys.
Operator: Your next question will come from Alek Valero with Loop Capital. Please unmute your audio and ask your question.
Analyst (Alek Valero): Yeah. Hey, guys. Thank you for taking my question. Yeah. Just on smartphones, what impact is, memory cost inflation having on your lower end phone volumes?
Raj Talluri: We are not shipping much volume right now. Right? So I think not so much impact right now, but we do see that the number of units shipped this year will probably be much lesser in terms of the total number of smartphone units shipped. Hopefully, that will normalize over the next couple of years by the time we get into higher volume may be less of hopefully, it would be less of an impact. But right now, not too much impact.
Analyst (Alek Valero): Okay. Thank you for clarifying that and Yeah. Another clarification question. Did you say that the 0.7 C testing requirement was removed or you are hoping to remove it? And if so, what impact does that have on your smartphone qualification timeline?
Raj Talluri: Yeah. it is our customers agreed to remove that as a must do. They have agreed to actually have a variation of the 0.2 see and 0.1 C and so on, which is actually how the phone is actually used. As the gating requirement. So that does help. You know, in terms of timelines, it will probably be a little bit longer because the 0.1 C, 0.2 C take longer to run. The 0.7 C is a fast discharge. it is an accelerated test, but it hurts the battery. So they realized it is hurting the battery. it is not really helping.
So in that sense, it may take a little bit longer to do 0.1 C, 0.2 C discharge because the time it takes to qualify is a little longer, at least on the first launches. But once we get to it, we understand what it is, we understand the trend, it should become normalized.
Analyst (Alek Valero): Got it. Thank you. Mhmm.
Operator: Your next question will come from William Peterson with JPMorgan. Your line is open. Please ask your question.
Analyst (William Peterson): Yeah. Hi. Good afternoon, and thanks for all the details on the call thus far. For AI-2, the 20% increase in energy density, you know, using this sort of the next generation platform, can you speak about the trade offs of this, including cycle life that we can consider? I realize this at least in the first stages for eyewear, but assuming I am assuming that AI 1 will be your focus for your initial and second smartphone customer. But do you have a plan to sample AI-2 for smartphones next year, or is this longer dated?
I am basically trying to get a sense for what needs to be solved for the next gen to be used in smartphones and you know, basically, it is a question we have asked in the past, but how should we think about your road map for smartphones beyond AI 1?
Raj Talluri: Yeah. Absolutely. I mean, look, I think the advantages we showed with the 20% increase on the smart glasses, that is why we showed a little bit of color on how we got to that. We increased the cathode voltage. We reduced the amount of inactive materials in there. We will put those and we will absolutely put those things into our smartphone battery, and you will see us improve it similarly. there is a few other things that we are continuing to improve. Packaging efficiency is 1 of them, how we actually package this. They are slightly different electrolytes. So we have a strong roadmap that will keep increasing energy density.
I mean, the thing you got I have mentioned to you, Bill, is that as I mentioned before, we use 100% silicon, but we are not getting the full potential of the energy density increase 100% silicon could and should provide because we have been trying to solve these other problems like cycle life, 0.7 C, you know, accelerated testing. Fast charge, and so on. But once we now work with the customers to get those things you know, understood and how exactly to do the qualification, we will continue to improve our energy density. And first instantiation of our improvement energy density we showed in the in the AI-2 in the smart glass.
But we will quickly roll that into smartphones for next year.
Ryan A. Benton: And the I will just chime in as well here. You know, the finance guy’s happy to report that of these key things on the road map, not only improve the energy density, but also reduce cost out of the bill materials and reduce the cost of manufacture. So it is really a kind of magic time when that happens.
Raj Talluri: Okay. And 1 other thing, Bill, maybe since you asked about density road map, I know, it is a question that is come up. Our battery swells very little. So the existing batteries, even with the ones with the silicon dope, still swell. So the most of the smart OEMs actually leave a space in the phone for to allow the battery to swell at end of life. So we actually do not need that space. So when if we get that space also, that is what we are working with our customers. They allow us to use that. Our energy density can be even higher.
So we will be once we get to qualification, we will be able to take advantage of that piece also.
Analyst (William Peterson): Thanks for that color. On the timeline for shifting or the general trend to move towards mechanical dicing, Are there any new challenges that we need to be mindful of? I am wondering about, you know, particles or mechanical stress or other technical issues you need to overcome. Or maybe even said another way, why was not mechanical dicing the primary path for this relative to laser dicing?
Raj Talluri: Well, I mean, you know, again, as you saw in the video, I wanted to show you guys a little bit of the This is a complex machine that we have been working on building for a while. it is not like you just take a roller and put a roll in it. Right? So we have to build roll to roll roller. We have to ablate. You know, we have to dice it. We have to find the right kind of binders and materials to actually make the right kind of coating in electrolytes so that, as you said, when you do it mechanically, it still holds.
So there is a lot of R&D, lot of know how has gone into it. We have been working on it for since I joined. So in that sense, it is a it is a very excited by it is a great technology that our teams have advanced. And there is still you know, again, there is still issues to be solved. Right? So we have to finish the dicing of it. We have to finish the anode, finish the cathode, and put it in a full cell. We are gonna take this year to actually do that because we have enough lasers to you know, meet all the demand we have for this year.
And, absolutely, next year is when we would like to roll that out.
Analyst (William Peterson): Great. And if I could sneak 1 more in, it is it is on the part that you wrote. So 70-5, 72 to 75 tests to life cycle and 1 below freezing power test. Mhmm. I think the power I am not sure about the freezing power test, but is there any insights to how your, you know, expectations? I think you feel I think you feel more confident about the life the cycle life, but what about this freezing power test? Something that I do not think I have heard much about in the past.
Raj Talluri: Yeah. it is it is it is 1 of those common use case because what happens is silicon behaves differently than at very low temperatures. So if your phone with a silicon battery at extremely cold when you start using the phone, and you suddenly have a use case where you pull a lot of energy out is very quickly, you know, there are some challenges to how much energy a battery can put out So these are the kind of situations where we are working very closely with our customers to see at what use cases does this happen, how much does it pull in, and which parts of the world and so on.
So it is, again, like the 0.7 C test, silicon is different from graphite. So the test you had before do not quite work exactly the same. But, you know, so that is 1 of those things that we are working with them. And I do believe that we will we will slowly get past that also as we continue with the journey. Thanks, Raj and Ryan for the details.
Analyst (William Peterson): Yeah. Thanks, sir.
Operator: Your next question will come from Gus Richard with Northland Capital Markets. Please unmute your audio and ask your question.
Analyst (Gus Richard): Yes. Thanks for taking the questions. You mentioned the 130 million of pipeline for military projects. Is that an annual number or is that, you know, a lifetime opportunity and, you know, how much currently how much capacity in Korea do you have to support that?
Raj Talluri: Yeah. So it is it is a total. We keep terms of what are the new designs that we are talking to customers and they are coming. So We typically can update that every quarter. it is not, like, annual. it is lifetime of those designs we have. They may take 1 year. They may take 2 years, you know, time to launch. We have enough capacity right now, but we are adding capacity now as Ryan mentioned, and we are building out that factory more. Fortunately, in the last acquisition we made, we got almost 300 thousand square feet factory with lots of buildings and power and dry rooms and so on.
Very good acquisition we were fortunate to get from SolarEdge. We are now feeding it to keep increasing the capacity. In line with the demand because the qualifications take a little time. So we are going to work on the capacity increase in line with that demand. In a relative basis, of course, this is, you know, relatively standard equipment. So it is it is just blocking and tackling.
Analyst (Gus Richard): Got it. And then when you mentioned the eyewear customer, I believe you said it was a reference design. I was wondering if that is an OEM or like, chip company’s reference design.
Raj Talluri: Yeah. Well, you know, again, because of confidentiality, I cannot say really more than who that is. But 1 thing I will say is, I wear maybe I add a little color to it. If you actually think of things like eyewear, there are things people wear on their on their personality. So it is a very style based thing. So most of the eyewear things we buy, as you know, comes from a fashion brands. Right? So like, I mean, you can think of Gucci’s and Prada’s and Ray-Bans, and you know, and so on that you buy from Sunglass Hut.
So most of the tech companies are even chip companies and so on will actually make a reference platform. So the ultimate product is actually branded as a fashion product. Right? So that is why it is very key to get a reference design, you know, with 1 of those leading technology providers. So that then the channel to market can be through the fashion brands. Got it.
Analyst (Gus Richard): Thanks so much. Thanks, guys. Yeah.
Operator: Are no further questions at this time. With that, I would like to turn it over to doctor Raj Talluri for closing remarks.
Raj Talluri: Yeah. I mean, thank you, everyone, and thank you for your all the questions. You know, over the past year, much of the discussion has been on validation of the technology and its commercial readiness. You know, we believe this quarter, we provided additional evidence. And the conversation can increasingly shift towards you know, disciplined execution against commercial commercialization milestones The markers to watch over the coming quarters are clear: continued progress and qualification targeted system level deployments, initial smartphone production ramp, and conversion of this drone pipeline into revenue. Now we view these as tangible operational milestones. We expect to demonstrate progress methodically over time. And thank you all for your support.
spencer baker
@spenbaker
$envx
The seventh slide in the earnings deck shows Meta Raybans and Apple glasses.
If a customer relationship exists under an NDA, the supplier cannot name them or use their proprietary UI. So I’m thinking Google rather than Meta or Apple is the lead glasses customer.
There is other evidence pointing to Google being the customer including:
1. In 2025 Enovix announced a massive pre-paid purchase order from a “Silicon Valley-based global technology leader in AI and immersive technologies” (that describes either Google or Meta). Enovix just announced it has begun initial shipments of eyewear batteries, aiming for 50,000 units this year.
2. There have been leaks regarding Google’s Android XR glasses platform. Industry insiders testing prototypes have pointed out that the software interface is incredibly fluid and Gemini’s visual processing is highly responsive; Enovix batteries are almost certainly the reason the prototypes are ultra-thin while maintaining good battery life.
3. Raj’s background at Qualcomm working alongside Hugo Swart who now runs Android XR at Google. Recall the photo of Raj and Hugo at the Google XR event during CES 2026.
4. Meta has a massive, multi-year partnership with Luxottica and already has a deeply entrenched supply chain for its current glasses.
5. Google has built the software platform Android XR and partnered with tier-1 OEMs to build a reference platform. Enovix on Wednesday deliberately used the phrase “reference platform”. The PR stated:
“In smart eyewear, Enovix has begun initial shipments and expects to ramp manufacturing in the third quarter to support a leading smart eyewear reference platform. We expect to produce approximately 50,000 units in 2026 and increase into 2027 as downstream deployments expand. We believe this represents an important initial validation that our 100% silicon-anode architecture can be manufactured at commercial scale.”
In summary, the SV customer paying Enovix for eyewear batteries is probably Google.
11:58 AM · May 16, 2026
also expects to ship millions of glasses batteries next year. This points to a giant customer like Google.
A small company like Jorjin will only produce in the tens of thousands per year. Even ten such customers equates to less than a million batteries.
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Enovix will participate in following:
26th Annual B. Riley Institutional Investor Conf
Marina del Rey, CA
May 20
TD Cowen’s 54th Annual Technology, Media & Telecom Conf
New York
May 27
William Blair 46th Annual Growth Stock Conf
Chicago
June 3