Business
Enovix To Acquire Korean Battery Cell Facility to Bolster Manufacturing
Acquisition will support company’s efforts to meet growing demand in the defense industry FREMONT, Calif., April 03, 2025 (GLOBE NEWSWIRE) -- Enovix
About this update from Enovix Corporation
[{"type":"text","content":"Acquisition will support company’s efforts to meet growing demand in the defense industry\nFREMONT, Calif., April 03, 2025 (GLOBE NEWSWIRE) -- Enovix Corporation (Nasdaq: ENVX), a global high-performance battery company, today announced the acquisition of battery cell manufacturing assets from SolarEdge, located in South Korea. The acquisition will expand the company’s manufacturing footprint and help position Enovix to meet growing demand in the defense industry. The transaction is expected to close in April 2025, subject to the satisfaction of customary closing conditions. Enovix will be acquiring a battery cell manufacturing facility from SolarEdge that is approximately 330,000 square feet, as well as battery cell development and manufacturing equipment. The SolarEdge facility has been operating for over 20 years. The facility to be acquired is directly adjacent to the company’s existing facility in Nonsan City, South Korea. Enovix plans to hire certain members of the SolarEdge Korea team including personnel in the manufacturing, quality, R&D and process engineer departments. The acquisition is expected to expand Enovix’s manufacturing capacity and expedite scaled production. “Better batteries are in high demand for many of the economy’s most critical industries, and Enovix is committed to building longer-lasting and more effective batteries that improve the world we live in,” said Dr. Raj Talluri, Enovix CEO and president. “By expanding our battery production facility in Korea we believe we will be able to simplify our supply chain, accelerate the pace of innovation and address the growing list of use cases for defense, industrial and consumer electronics customers.” Enovix’s sales from batteries manufactured in its Korea facility are projected to increase in 2025 and 2026 facilitated in part by this acquisition which is expected to improve gross margins going forward. The company also now forecasts a higher sales mix from this facility going to defense and industrial applications. “From its inception, Enovix has focused on breakthrough battery innovation and operational excellence,” said T.J. Rodgers, Enovix chairman. “This acquisition is a step in advancing that mission at scale as it will ensure greater control over quality and strengthen our ability to deliver solutions to a wider range of customers more efficiently.” Fo...