5. Enovix Corporation (NASDAQ:ENVX)
Market Capitalization as of September 5: $1.4 billion
Number of Hedge Fund Holders: 22
One of the best lithium and battery stocks, Enovix Corporation (NASDAQ:ENVX) is engaged in designing, developing, and manufacturing lithium-ion batteries. The company has introduced a distinctive 3D silicon lithium-ion battery that utilizes a 100% silicon anode, which is a significant advancement over the traditional graphite anodes used in most batteries.
The breakthrough design allows the company to achieve energy densities exceeding 900 Wh/l while ensuring a cycle life that surpasses 500 cycles. Its patented 3D cell architecture effectively addresses common issues associated with silicon anodes, such as swelling and lithium trapping, enhancing both the safety and efficiency of their batteries.
In the second quarter, 22 hedge funds had investments in Enovix (NASDAQ:ENVX), with positions worth $153.245 million. Electron Capital Partners is the most prominent shareholder in the company as of Q2 with a stake worth $89.7 million.
Enovix (NASDAQ:ENVX) is building a substantial $1.2 billion high-volume manufacturing plant in Malaysia. The facility is set to boost its production capacity significantly, which will allow the company to meet the increasing demand for its advanced batteries across various applications, from mobile devices to electric vehicles.
The construction is progressing well, with the Site Acceptance Testing (SAT) for the Fab-2 Agility line already completed. The first batch of EX-1M samples has been produced and sent to customers. The SAT for the Fab-2 high-volume manufacturing line is expected to be finalized shortly, with initial production projected to begin in the third quarter of 2024 and ramping up through 2025.
In recent developments, Enovix (NASDAQ:ENVX) has entered into a Memorandum of Understanding (MOU) with Elentec, a prominent battery pack manufacturer in Asia with significant clients like Samsung. The partnership is set to strengthen the company’s position by leveraging Elentec’s expertise in battery pack design and high-volume manufacturing.
Furthermore, in May, the company signed a development agreement with one of the top five smartphone OEMs globally. The company also announced a non-binding MOU in July with a major global automotive OEM to explore scaling its battery technology for the EV market. The agreement focuses on optimizing the company’s cell design to improve performance at various levels, including the cell, pack, and vehicle. These developments make Enovix (NASDAQ:ENVX) one of the best battery stocks.
Massif Capital Real Assets Strategy stated the following regarding Enovix Corporation (NASDAQ:ENVX) in its Q2 2024 investor letter:
“Enovix Corporation (NASDAQ:ENVX): Enovix is perhaps a bit of an outlier in our portfolio given that it is a battery manufacturer selling into consumer goods markets, but it fits nicely in what we believe to be the Massif Capital analytical sweet spot, businesses where science/technology, geopolitics/geoeconomics and energy/materials overlap. While some would argue that Enovix is inappropriate for a liquid real asset portfolio, the traditional definition of real asset businesses is dated.
Traditionally, real asset businesses are those that own and operate real estate, infrastructure, and natural resource assets. While this definition is workable, and most of the companies we invest in fall into one of these categories, it does not consider the ever-growing role of applied physical sciences in specific manufacturing fields, nor does it take into account the growing importance of material sciences and the changing nature of energy in general. Enovix is a material sciences business aiming to transform an ever-growing list of unique, highly refined materials into energy storage devices. They create value by understanding materials’ physical and electrochemical properties better than others…” (Click here to read the full text)
