Enovix Corporation (“Enovix”) (Nasdaq: ENVX), an advanced silicon
battery company, today announced the acquisition of privately-held
Routejade, an established Korean battery manufacturer for a total
consideration of approximately 6.2 million shares of Enovix common
stock and $16.5 million in cash assuming purchase of 100% of
Routejade. The acquisition provides Enovix with vertical
integration of electrode coating and battery pack manufacturing
while adding an established lithium-ion battery business with
factories in Korea, along with complementary products, customers,
and suppliers. The transaction is expected to close in the fourth
quarter of 2023 and be immediately accretive.
Routejade has been qualified as a supplier of coated rolls of
electrodes for Enovix batteries with capacity to support the Fab2
scale-up that begins in 2024. By bringing coating capability
in-house, Enovix intends to realize significant cost savings while
speeding up battery development cycles as modern materials are
quickly incorporated to improve energy density. Securing the
coating supply chain is also intended to ensure the quality of
incoming battery materials which can positively impact
manufacturing yield and throughput.
Routejade brings over 20 years of experience as a manufacturer
and supplier of lithium-ion batteries, targeting end markets such
as wearables, hearables, medical, industrial, and the South Korean
military. Routejade’s patented encapsulation technology allows for
circular and asymmetric battery form factors, complementing the
ability of Enovix to support multiple customer requirements.
“This is a compelling acquisition with a strong ROI profile for
Enovix given the obvious financial benefits of vertically
integrating coating while providing our R&D team quicker access
to new materials to enhance our product roadmap and benefit
customers,” said Dr. Raj Talluri, President and CEO of Enovix. “My
vision is for Enovix to grow our battery performance metrics at a
significantly faster rate than the industry by harnessing the
materials agnostic nature of our architecture and this transaction
accelerates our ability to execute that plan.”
Continued Dr. Talluri, “We are also making tremendous strides in
manufacturing with yield gains in Fremont, which positions our Gen2
equipment for a strong start in 2024. We have been very impressed
with Routejade’s coating know-how and believe it will only improve
our ability to deliver competitive yields while producing batteries
in high volume at an attractive cost structure.”
Routejade is led by CEO Mr. Kihong Park. Mr. Park has
approximately 30 years of experience in Li-ion battery
manufacturing businesses in Korea, including a 21-year tenure at
Kokam (now SolarEdge Energy Storage Division), where he served in
roles such as CTO and COO. Mr. Park will report to Dr. Talluri and
continue to run the Routejade business.
“We are excited to join Enovix, a truly revolutionary company in
the lithium-ion battery industry,” said Mr. Park. “The growth
prospects for this business are substantial, and we look forward to
playing an important role in Enovix’s journey to scale.”
Conference Call Information
Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM
ET today, September 20, 2023, to discuss the Routejade acquisition.
To join the call, participants must use the following link to
register: https://enovix-update-sept-2023.open-exchange.net/. This
link will also be available via the Investor Relations section of
Enovix’s website at https://ir.enovix.com. An archived version
of the call will be available on the Enovix investor website for
one year at https://ir.enovix.com.
About EnovixEnovix is on a mission to power the
technologies of the future. Everything from IoT, mobile and
computing devices, to the vehicle you drive, needs a better
battery. The company’s disruptive architecture enables a battery
with high energy density and capacity without compromising safety.
Enovix is scaling its silicon-anode, lithium-ion battery
manufacturing capabilities to meet customer demand. For more
information visit www.enovix.com and follow us on LinkedIn.
Forward-Looking Statements
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, about us and our industry that involve substantial risks
and uncertainties. Forward-looking statements generally relate to
future events or our future financial or operating performance. In
some cases, you can identify forward-looking statements because
they contain words such as “will,” “goal,” “prioritize,” “plan,”
“target,” “expect,” “focus,” “look forward,” “opportunity,”
“believe,” “estimate,” “continue,” “anticipate,” and “pursue” or
the negative of these terms or similar expressions. Forward-looking
statements include, but are not limited to, statements regarding
our expectations regarding, and our ability to respond to, market
and customer demand, our customers’ releases of products using our
batteries, our financial and business performance, projected
improvements in our manufacturing, commercialization and R&D
activities. Forward looking statements also include the following
regarding the acquisition of Routejade: our expectations regarding
Routejade’s coating capabilities, the business expectations of
Routejade, the ability to realize synergies from Routejade, the
ability to accelerate product development, the ability to realize
materials cost-down efforts, the reduction of future capital
expenditures by $35 million for coating capacity, the ability to
realize accretive battery business focused on Military and IoT end
markets with growth potential and opportunity to convert customers
to premium silicon cells. Actual results could differ materially
from these forward-looking statements as a result of certain risks
and uncertainties, including, without limitation, our ability to
improve energy density among our products, our ability to establish
sufficient manufacturing and optimize manufacturing processes to
meet demand, sourcing or establishing supply relationships,
adequate funds to acquire our next manufacturing facility, market
acceptance of our products, changes in consumer preferences or
demands, changes in industry standards, the impact of technological
development and competition, and global economic conditions,
including inflationary and supply chain pressures, and political,
social, and economic instability, including as a result of armed
conflict, war or threat of war, terrorist activity or other
security concerns or trade and other international disputes that
could disrupt supply or delivery of, or demand for, our products.
For additional information on these risks and uncertainties and
other potential factors that could affect our business and
financial results or cause actual results to differ from the
results predicted, please refer to our filings with the Securities
and Exchange Commission (the “SEC”), including in the “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of our most recently
filed annual report on Form 10-K and quarterly report on Form 10-Q
and other documents that we have filed, or that we will file, with
the SEC. Any forward-looking statements made by us in this release
speak only as of the date on which they are made and subsequent
events may cause these expectations to change. We disclaim any
obligations to update or alter these forward-looking statements in
the future, whether as a result of new information, future events
or otherwise, except as required by law.
For investor and media inquiries, please
contact:
Enovix CorporationCharles AndersonPhone: +1 (612) 229-9729Email:
canderson@enovix.com
For media inquiries, please
contact:
Enovix CorporationKristin AtkinsPhone: +1 (650)
815-6934Email: katkins@enovix.com
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