Silicon Li-ion battery SPAC deal promises mobile benefits

Business news | February 22, 2021

By Rich Pell

Analog Wireless Communications Materials & processes Wearables Automotive Batteries / Power Supplies IoT Power Management

Enovix says it has designed, developed, and sampled advanced Lithium-ion batteries with energy densities five years ahead of current industry production, with its first products including batteries with energy densities as high as 900 Wh/L. Unlike traditional “jelly roll” Li-ion batteries, the company’s products are encased in precision stainless steel and manufactured with a high-speed precision stacking process – a proprietary 3D cell architecture that enables the company to use silicon as the only active lithium cycling material in the anode.

The proceeds from this transaction, says the company, will enable it to build out its first two production facilities to support demand from blue chip customers in fast-growing mobile computing markets (wearables, mobile communications, PCs and AR/VR), totaling 1.78 GWh of capacity, while continuing to develop cells for EVs.

“In 2007, the co-founders of Enovix set out to build a better battery by changing the cell architecture,” says Harrold Rust, co-founder and Chief Executive Officer of Enovix. “Today, we stand at the threshold of producing the first advanced silicon-anode lithium-ion battery for mass-market applications from our U.S. manufacturing facility.”

Rodgers Silicon Valley Acquisition Corp. (Nasdaq: RSVA, RSVAU, RSVAW) says its mission is to provide fundamental public technology investors with early access to an excellent Silicon Valley technology company with a focus on green energy, electrification, storage, Smart Industry (IoT), Artificial Intelligence and the new automated-manufacturing wave.

T.J. Rodgers, Chairman and Chief Executive Officer of RSVAC and a member of the board of directors of Enovix, says, “Enovix has made industry-altering breakthroughs in two areas: battery design and battery manufacturing. Every chemistry professor has a better battery idea in his notebook. But only Enovix is building a world-class fab for actually putting a high-energy density silicon anode battery into the hands of the world’s leading technology companies.”

“The company will have a big impact on products in mobile computing, wearables, and ultimately electric vehicles,” says Rodgers. “Enovix has spent 13 years doing difficult work and refused to compromise on engineering integrity. Its toughness led Enovix to today’s transaction, and billions of consumers stand to benefit.”

The transaction reflects an estimated pro forma enterprise value for the combined company of approximately $1.128 billion. Upon the closing of the business combination, and assuming no redemptions of shares of Rodgers by its public stockholders, Enovix will receive approximately $385 million in net cash, after expenses. The proceeds will be funded through a combination of approximately $230 million cash in trust by Rodgers and a $175 million concurrent private investment in public equity (PIPE) of common stock issued at $14 per share, anchored by leading institutional investors.

Enovix’s Rust adds, “We are excited to partner with the accomplished team at RSVAC, who understand that the success of any advanced product is the ability to produce it at scale. With their help and the capital provided by this transaction, Enovix will produce the advanced batteries that power our mobile future.”

Upon closing of the transaction, which is expected in the second quarter of 2021, the company will be named Enovix Corporation and is expected to remain listed on the Nasdaq Stock Market under the new ticker symbol, “ENVX.”

Enovix Corporation