The first order sent up the quotes from the battery manufacturer, Enovia

Lithium-ion battery manufacturer Enovix Corporation (ENVX) has received its first major supply contract. This gave a strong positive impulse to the quotes this week. At the auction on May 4, ENVX stock was worth $11.02. The market capitalization was $1.8 billion. Enovix said that one of the world’s best-known electronics companies had asked them to buy batteries.

The name of the client company was not mentioned, but this message was enough for the stock market to increase quotations by 36% at the next auction. It should be noted that the contract provides for a period of more than a year for testing Enovix products in accordance with the required specifications of the client. In the event that the tests go well, Enovix will get an order to make a lot of them.

Nevertheless, this is a strong positive signal of the interest of large industry in the development of Enovix. The current year has become one of the most important for Enovix, as the company begins to supply batteries produced on its automated assembly line. As a start, Enovix was looking for ways to make things quickly, cheaply, and meet the huge demand of the future “electric” economy, where batteries are used in everything from IoT devices to electric cars and air and sea transportation. This is what the company wanted to do at first.

Enovix anticipates annual revenue of more than $1 billion once current production reaches full capacity. At the same time, the company plans to receive its first income in the second quarter of 2022. The strength of the company is its reliance on the trend of increasing demand for batteries, which is at an early stage of growth.