Enovix Corporation · NASDAQ:ENVX
Enovix — SPAC Merger (February 2021)
64 slides from Enovix's SPAC merger presentation, Feb 22, 2021
Slide 1: Enovix – Rodgers SVAC Merger
3D Silicon Ρ Lithium - ion Battery Enovix ‒ Rodgers SVAC Merger February 2021
Slide 2: Disclaimer
Di s c l a i mer 2 This presentation (this “Presentation”) is provided solely for information purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity or debt . It has been prepared to assist interested parties in making th
Slide 3: Disclaimer (Cont.) Risk Factors
Disclaimer (Cont.) 3 Risk Factors Actual events, circumstances, or results are difficult or impossible to predict and may differ materially from those contemplated in any forward - looking statements made in this Presentation and are due to a variety of risks and uncertainties related to Enovix’s ab
Slide 4: Disclaimer (Cont.) Important Information About the Proposed Business Combination
Disclaimer (Cont.) 4 Important Information About the Proposed Business Combination and Where to Find It In connection with the proposed business c ombination , RSVAC intends to file with the SEC a Registration Statement on Form S - 4, which will include and serve as a proxy statement/prospectus (the
Slide 5: Rodgers SVAC Selection Criteria from S-1
Green Energy, electrification, storage √ Advanced Li - ion batteries. Public company readiness Not yet On - board CFO. Improve business processes. Get SOX - ready. Put three RSVAC executives on board. Use five other RSVAC advisors . Use McKinsey. Technically dominant product √ Sampled highest energy
Slide 6: Transaction Overview
Transaction Overview Timeline • Enovix and Rodgers Silicon Valley Acquisition Corp. expect to enter into a business combination agreement and file a registration statement in March 2021 • The transaction is expected to close in the 2nd quarter of 2021 • Upon the consummation of the business combinat
Slide 7: Agenda
Enovix Overview & Team Introduction 3D Silicon Li - ion Battery ΠTechnology Market & Top - 5 Customer Deals Manufacturing Plans: Fab - 1, Fab - 2, and Fab - 3 Financials Competition: Lithium Metal Anode Technology Conclusion 7 Agenda
Slide 8: Enovix Overview
3D Silicon Ρ Lithium - ion Battery Enovix Overview February 2021
Slide 9: Lithium-Ion Batteries by TJR
Lithium - Ion Batteries by TJR 9 Cathode (+) Iithium in metal oxide matrix on aluminum foil. Separator. High - tech plastic through which Li+ ions flow. Anode ( – ). Graphite on copper foil. e - e - Charge . Li atoms on cathode 1) lose e - , 2) turn into Li+ ions, 3) diffuse to anode, 4) gain e - at
Slide 10: Enovix Overview
10 Enovix Overview Designed, developed and sampled Li - ion batteries with energy densities five years ahead of current industry production РBased on (1) Silicon anode technology and (2) 3D Silicon ΠCell Architecture РCurrently sampling batteries with 27% - 110% higher energy density than market
Slide 11: Watt Hours/Liter vs. Battery Size
Watt Hours/Liter vs. Battery Size 36% active volume 74% active volume 11 Core energy density = 1,249 Wh /l
Slide 12: EX-Battery: First Products
EX - 1 Battery: First Products 900 Wh /l state - of - the - art cell phone battery 12 Calculated energy density vs. package volume curve 1,249 Wh /l Gap to be closed with Fab - 1 equipment ( more precise )
Slide 13: EX-Battery: First Products
EX - 1 Battery: First Products Record 722 Wh /l rechargeable watch battery 13 1,249 Wh /l
Slide 14: Enovix Board
Enovix Board 14 T.J. Rodgers Founder & 34 - yr CEO Cypress Semi Chairman of SunPower IPO Enphase Director in turnaround Dartmouth: Physics & Chemistry Stanford: MSEE, PhDEE Joined Board 2012 Greg Reichow General partner of Eclipse Ventures Cypress Semi: Fab Quality Director SunPower : ran solar auto
Slide 15: Enovix Management Team
Enovix Management Team 15 Ashok Lahiri , CTO Enovix co - founder Lead Architect FormFactor & IBM teams BSChE UC Berkeley 77 patents Harrold Rust, CEO Co - founded Enovix 2007 FormFactor : VP Operations 2002 - 07, ran fab 3D probe cards @ $300K each, No. 1 in industry IPO 2003, $369M revenue 2006 IBM
Slide 16: Conventional Wound Li-ion Battery vs Enovix 3D Silicon Battery
Conventional Wound Li - ion Battery Enovix 3D Silicon Ρ Battery Microscopic Cross Section 1 30mm Microscopic Cross Section 2 30mm Anode Material Capacity ( silicon anode) 1800 mAh /cc 3 Anode Material Capacity ( graphite anode) 800 mAh /cc 4 1 Source: Enovix Corporation. 2 Source: Journal of The Ele
Slide 17: Li-ion Battery Energy Density Roadmap
0 100 200 300 400 500 600 700 800 900 1000 1990 1995 2000 2005 2010 2015 2020 2025 2030 Year 1 Actual and projected Enovix energy density metrics for a smartphone - size battery 2 Samsung Note 7 fire problems resulted in less aggressive cell designs and lower energy density for 2 yrs Watt hours/lite
Slide 18: Marketing & Top-Customers
Marketing & Top - 5 Customers
Slide 19: Enovix Battery Benefits in Currently Available Products
Garmin Fenix 6X Snap Spectacles Motorola Radio Motorola Razr Phone Dell XPS 13 Product Current Capacity 450 mAh 134 mAh 3,400 mAh 2,510 mAh 3,520 mAh Enovix EX - 1 Capacity 797 mAh 208 mAh 7,122 mAh 3,996 mAh 2 4,455 mAh Enovix Battery Benefits 1 In Currently Available Products 19 1 Calculated impro
Slide 20: Technology Megatrend Drivers
Technology Megatrend Drivers 20 ELECTRIC VEHICLES From 2.1M in 2019 to 8.5M in 2025 5 5G CELL PHONES Faster adoption than 4G From 12M in 2020 to 350M in 2023 2 Artificial Intelligence on cell phones From 10 % to 80 % in 2022 3 AUGMENTED REALITY (AR/VR) “I think AR is that big (next mass - market tec
Slide 21: First Revenue: Premium Segments of $75B Market
21 First Revenue: Premium Segments of $75B Market 1 Avicenne Energy, “The Worldwide Rechargeable Battery Market,” January 2019 2 Trendforce AR/VR Devices Shipment, July 2020; Company estimates as of January 2021 3 IDC Worldwide Wearable Device Forecast 2020 - 25, January 2021; Company estimates as o
Slide 22: Customer Served Market
Customer Served Market 2020 Units Rev/year Laptop market 1 leader Laptop market: $102B ( 2017) 1 Product development. 15M $120M Land mobile radio (LMR) market leader (public safety, EMS) 2 LMR market : $18B in 2019 to $25B in 2022 3 Product development. 20M $88M Smartwatch market 4 leader Smartwatch
Slide 23: Technology: 3D Architecture Enables Silicon Anode
Technology 3D Architecture Enables Silicon Anode
Slide 24: Higher Energy Density: Silicon Anode
Higher Energy Density: Silicon Anode 1 De - rated from theoretical capacity of 2194 mAh /cc to account for Li - trapping and pre - lithiation 2 Fully lithiated 3 100% of active anode is elemental silicon 4 Equivalent Li metal thickness 25 microns 24 LiC 6 Graphite Anode (Sony 1991) 90 μ at 28% Li 2
Slide 25: Tesla's Future Anode of Choice: Silicon
Tesla’s Future Anode of Choice: Silicon 25
Slide 26: Silicon Anodes vs. Graphite Anodes
Conventional Graphite Anode 1 1. Formation* expansion LOW Anode material only expands ~10% 2. Formation* efficiency HIGH (90 - 95%) Low loss of Li trapped in anode material 3. Cycle swelling LOW (<10%) Stable anode electrode thickness 4. Cycle life HIGH (>500 cycles) Stable structure Low Li trapping
Slide 27: Four Killer Problems Faced Silicon Anodes
Conventional Graphite Anode 1 Conventional Silicon Anode Problems 1. Formation expansion LOW Anode material only expands ~10% HIGH Silicon anodes expand by over 2x when charged 2. Formation efficiency HIGH (90 - 95%) Low loss of Li trapped in anode material LOW (50 - 60%) About half the Li is perman
Slide 28: Problem 1: Formation Expansion Damage
Stainless steel : • Puncture resistant • Heat sink Prob 1. Formation (First Charging) Expansion Damage 3D Integrated Constraint contains the forces of Si anode expansion 28 50mm 30mm 1,500psi = 210 pounds Stainless steel constraint & end cap Enovix 3D Cell 3mm 1,500psi = 210 pounds 1,500psi = 1.7 to
Slide 29: Problem 2: Formation Efficiency: Lithium Loss
Prob 2: Formation Efficiency: Lithium Loss “Pre - lithiation” replaces 100% of the lithium lost at formation 29 [Li source] Vertical electrodes only 3mm high allow for fast diffusion of added lithium into silicon 50mm Impractical to diffuse lithium over the long 50mm dimension Li source
Slide 30: Problem 3: Cycle Swelling Controlled by Integrated Constraint
Prob 3: Cycle Swelling Controlled by Integrated Constraint 1st cycle 538 cycles 1 Less than 2% swelling (better than graphite) 3 mm 3 mm 30 1 100% DOD, 4.35v - 2.70v. 1C charge (CCCV)/1C discharge
Slide 31: Problem 4: Cycle Swelling Damages Anode
DISCHARGE Particle cracking 1 Silicon lithium - ion half cell; 5 mAh/cm 2 loading electrode swelling 20 m m 100 m m Prob 4: Cycle Swelling Damages Anode Silicon Silicon cracks trap additional lithium limiting cycle life 20 m m electrode shrinkage 100 m m 55 m m 31 Li Li Li Li trapping CHARGE 100% Ch
Slide 32: Enovix Solved the Silicon-Anode Problems
Enovix 3D Cell Architecture Solution 1. Formation expansion Stainless steel Integrated Constraint 2. Formation efficiency Pre - lithiation to “top - off” Li to 100% 3 & 4. Swelling & cycle life Integrated Constraint holds swelling to <5% and increases cycle life to > 500 Enovix Solved the Silicon -
Slide 33: Actual Enovix 3D Silicon Cell Cycle Life
Actual Enovix 3D Silicon Cell Cycle Life 33 500 1 260 mAh cell (26 mm x 20 mm x 3.4 mm);530 Wh /l VED (960 Wh /l core); 1C CCCV charge/1C discharge; 4.35 – 2.7 V; 4.5mAh/cm 2 LCO loading. Charge - discharge curves 1
Slide 34: Enovix Battery Energy Density Roadmap
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1990 1995 2000 2005 2010 2015 2020 2025 2030 Year 1 Actual and projected Enovix energy density metrics for a cell - phone - size battery. 2 Samsung Note 7 fire problems resulted in thicker separators and lower energy density for 2 yrs. Watt h
Slide 35: Silicon Anode vs. Lithium Metal Anode
Silicon Anode vs. Lithium Metal Anode (For the same high - energy cathode) 1 De - rated from theoretical capacity of 2100 mAh /cc to account for Li - trapping and pre - lithiation 2 Fully lithiated , 3 QuantumScape, Solid Power, et. al. 4 Ceramic separator thicker than plastic separator; 25 μ thinne
Slide 36: Manufacturing Plans
Manufacturing Plans
Slide 37: Fab-1 Will Make a 3D Battery Every 2.0 Seconds
Industry Standard Electrode Fabrication (40% of Mfg Process) Fab - 1 Will Make a 3D Battery Every 2.0 Seconds 1 Enovix 3D Cell Direct Assembly and Pre - lithiation (30%) 2 Industry Standard Cell Packaging (30%) 1 4 lines running 900 Wh /l cell batteries @ 80% OEE on 550 uph lines. 2 Replaces industr
Slide 38: Fab-1 Will Make a 3D Battery Every 2.0 Seconds
Industry Standard Electrode Fabrication (40% of Mfg Process) Fab - 1 Will Make a 3D Battery Every 2.0 Seconds 1 Enovix 3D Cell Direct Assembly and Pre - lithiation (30%) 2 Industry Standard Cell Packaging (30%) 1 4 lines running 900 Wh /l cell batteries @ 80% OEE on 550 uph lines. 2 Replaces industr
Slide 39: Fab-1 Fremont 45,044 sq.ft
Fab - 1 Fremont 45,044 sq.ft 39 ZONE Area [SQFT]Comment Zone1 - Electrode Fabrication 5656 Zone2 - Battery Assembly 9242 Zone3 - Battery Packaging 8667 Partially Dry Room - Mezzanine Zone4 - Formation & Test 12812 Partially Hot Room Total FAB1 - Production Floor 36377 Incl. Spare for 3rd Line (Z1, Z
Slide 40: Current Research & Development Area
Current Research & Development Area Built and Tested >20,000 Batteries 40
Slide 41: Fab-1 Equipment At Vendor Factory Acceptance Test
Fab - 1 Equipment At Vendor Factory Acceptance Test (FAT) 1 Separator Laser 41 1 Factory Acceptance Test. Equipment must perform to specification at the vendor’s factory before shipment to Enovix and must pass another test after installation at the Enovix site. Electrode Lasers
Slide 42: Fab-1 Equipment
Stacking Insulator Apply Fab - 1 Equipment 42
Slide 43: Fab-1 Equipment
Connector Tab Insert Laser Weld Fab - 1 Equipment 43
Slide 44: Fab-1 Equipment
Tab Welding Pouch Forming Fab - 1 Equipment 44
Slide 45: Fab-1 Equipment
Flag Preparation Sealing Fab - 1 Equipment 45
Slide 46: Fab-1 Equipment
ASRS Robot Formation Cabinets Fab - 1 Equipment 46
Slide 47: Fab-1 in Progress
Fab1 in Progress Dec ‘20 Feb ‘21 47
Slide 48: Fab-1 Schedule
Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Quality Electrode Fabrication Assembly Packaging Test and Formation AR/VR Wearable Mobile Comm. Laptop FAT SAT FAT SAT FAT SAT FAT SAT Customer Qual Customer Qual Fab 1 Customer ISO9001 Certified UN, UL, IEC Cert First Revenue Product Ship
Slide 49: Core Energy Density Distributions 2018-2021
49 Q1 - 2018 Q4 - 2018 Q1 - 2019 Q3 - 2019 Q3 - 2020 Q1 - 2021 Core Energy Density Distributions 2018 - 2021 Watt - hours/liter ( Wh /l) Learning 95 75 25 5 50 % - ile Tightening distribution
Slide 50: Scale-Up Strategy
Scale - Up Strategy
Slide 51: Fab Scale-Up Strategy
Fab - 1 Fab - 2 Fab - 3 2 Production Site Fremont Buy fab & upgrade JV / licensing in automotive First Revenue Q2’22 Q2’23 2025 Revenue (2025) $220M 1 $581M Capacity (cells) 45M/ yr 89M/ yr Capacity ( Wh ) 254 MWh 1.53 GWh 35 GWh Cash Flow Trough ($208M) ($327M) 51 Fab Scale - Up Strategy 1 Product
Slide 52: Fab-3 Status: Candidate Facilities
Fab - 2 Status 22 identified candidate facilities for acquisition and/or Retrofit 52 Livonia, MI Mississauga, ON Midland, MI Holland, MI Smyrna, TN Jacksonville, FL Nuevo Laredo, MX Austin, TX Koriyama, JP Zama, JP Sagamihara, JP Wuxi, CH Changzhou, CH Zhangzhou, CH Shenzhen, CH Tuas , Singapore Sun
Slide 53: Enovix Factory Retrofit Concept
Enovix Factory Retrofit Concept Enovix proprietary processes constraint application slitting electrode fabrication testing ageing pre - lithiation packaging & Equipment set: ~70% standard + ~30% Enovix - specific FLOW REVENUE BOOST METRIC PRE POST Whr /day 1 1.00 1.30x $/ Whr (ASP) 1.00 1.27x Revenu
Slide 54: Financials
Financials
Slide 55: Financials
Financials 55 (All $M unless noted ) 2021 2022 2023 2024 2025 Revenue 7 2 11 176 410 801 GM% 14% 46% 52% Operating Expense 35 34 47 83 157 Opex % 26% 20% 20% Operating Income - 31 - 61 - 21 105 257 Op Inc% - 12% 26% 32% EBITDA - 29 - 49 6 140 314 Capex 58 117 87 156 80 Free Cash Flow - 88 - 165 - 81
Slide 56: Enovix vs. QuantumScape Published Plans
Parameter Enovix QuantumScape Enovix Advantage Year Founded 2007 2010 First - mover advantage (FMA) Technology Silicon Anode & 3D Architecture Lithium Metal Anode & Ceramic Separator Manufacturing feasibility demo’ed for both Enovix technologies Customer Samples 1 2018 - 2020 N/A 20 customers/4 prod
Slide 57: Conclusion
Conclusion
Slide 58: Conclusion
Conclusion 58 Enovix is the best positioned to become a major player in next - generation Li - ion batteries: Early start 2007 Successful 13 - year, $239 million, 89 - patent silicon anode development Demonstrated 900 Wh /l technology Fab - 1 being equipped now Key customers invested in Enovix for e
Slide 59: Thank you
Thank you EnSvix
Slide 60: Appendix
Appendix EnSvix
Slide 61: Key Transaction Terms
Key Transaction Terms • The contemplated business combination prices Enovix’s enterprise value at $1.128 billion, representing 1.41x 2025E revenue • The resulting implied equity value is $ 1.513 billion, after adding $ 385 million in pro forma cash to the balance sheet • Executed subscription agreem
Slide 62: Transaction Priced at a Discount to Peers
Transaction Priced at a Discount to Peers Summary of Approach 65% Discount 39% Discount 3.0x – 5.0x CY2025E Revenue Discount Rate: 20% 3.0x – 5.0x CY2025E Revenue 1.41x CY2025E Revenue • Implied Future EV: apply a multiple range of 3.0x – 5.0x (discount to median of Enovix’s peers) to Enovix’s CY202
Slide 63: Valuation Benchmarking
3.6x NM NM 28.9x 69.2x 43.0x 18.7x 11.4x 16.5x 10.6x 2.0x 5.2x 1.4x 57.0x 50.6x 14.4x 12.9x 8.9x 3.2x 3.1x 4.1x 2.1x 0.5x 1.0x Valuation Benchmarking 63 High Value Components and Materials Battery SPACs EV / Revenue EV / EBITDA 2022E 2025E Enovix 2028E 2025E Current Announcement (1) Median: 3.6x Med
Slide 64: Operational Benchmarking
39% 16% NM 50% 19% 21% 17% 27% 25% 20% 97% 50% 32% 30% 46% 39% 20% 12% 384% 64% Operational Benchmarking 64 2 - Year Revenue CAGR % EBITDA Margin % 2022E 2025E 2028E Median: 32% Gross Margin % Median: 21% Median: 25% High Value Components and Materials 2022E Battery SPACs 2026E – 2028E 2023E – 2025E