Enovix (ENVX) shares surged more than 28% Tuesday after the company announced it has signed an agreement with a leading California-based technology company to provide silicon batteries and packs for a mixed reality headset.
"We are thrilled to sign this agreement with a clear leader in the mixed reality market," said Samira Naraghi, Senior Vice President, Product, Enovix
Under the terms of the agreement, Enovix said it will receive an immediate one-time payment for tooling to support battery pack dimensions. This will be followed by payments for the delivery of both sample and production quantities.
"Devices in this market need to be light, fashionable, and safe while also supporting 'always-on' immersive experiences that leverage AI. Our high energy density batteries are uniquely suited to this task," added Naraghi.
Dr. Raj Talluri, President and CEO of Enovix, said the agreement underscores the need for a better battery in the mixed reality market and validates the company's strategy of focusing on stringent smartphone product requirements.
"Our vertically integrated pack manufacturing, enhanced by the acquisition of Routejade, positions us to succeed in adjacent markets like IoT," stated Talluri.