Canaccord Genuity Group Inc Fireside Chat with Enovix Corp Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : So Raj, you're bumping up against your three-year anniversary at Enovix. And so I'd like to ask you at a high level, what your learnings have been so far being part of this emerging battery vendor? And if there are things maybe you would have done differently from the beginning?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : God bless you. It's pretty cold here.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : I actually wanted to double-click on a couple of things that you mentioned that were sort of interesting. So you mentioned this testing process that's way different for batteries than it is to chips. I'm just curious, is AI helping at all with that in sort of accelerating that process?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : So the issue, just to put it bluntly, is that the rate of degradation, the projected rate of battery degradation after 1,000 cycles was going to be greater than 20%, getting to below 80%.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : And this is a problem that could get solved by marginal changes in the electrochemistry?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : I did want to focus on one thing you said in the beginning, which I thought was interesting, and it's a really good point that because it takes so much work to do what you've done already, it makes -- it creates a greater moat around your business over the long term, if you're successful, which we believe you will be. But does that mean that potentially the existing cell manufacturers, the ATLs, etc, can they somehow replicate what you've done? Or are the barriers also similar for them or somewhat similar for them to getting into what you've accomplished now and it's completely changing the manufacturing paradigm itself?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : And the electrolyte, is that patent protected?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Got it. Maybe to focus on Honor for a second. You've already talked a lot about it. And to the extent this relationship with this company is different than potential second, third, fourth relationship, how is the joint development agreement that you mentioned? And what makes this relationship sort of different than what will come over the next few years, hopefully, with others?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Given the joint development that you're doing with Honor, are there any restrictions on what you can sell to other customers? Is there anything that they own in terms of the process or the electrochemistry?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Okay. And just as a reminder, and Rob, please keep me honest, you're expecting an order at some point in the first half of the year, first quarter, when can we sort of expect a conclusion to this process?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Okay.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Just to maybe focus a little bit more on smartphones. You mentioned you have another lead potential customer as well, number two. I'm assuming this is one of the big smartphone OEMs, a large one. Any update on the incremental progress you've made with that potential customer?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : And in terms of your relationships and testing with broader smartphone OEMs, I remember -- this is last year, you made -- you signed an MOU with a company called Elentec, which based on our work, they're a pack manufacturer for companies like Samsung. Is it fair to say that many of the other large OEMs and maybe the non-Chinese, maybe some Koreans, you're also working with in terms of establishing relationships and potentially after this testing is done, shipping your cells to other OEMs.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : That's a great segue into my next question, which is CES, which is in a few weeks. You've talked about maybe making some announcements there, some exciting stuff in smart glasses. Any preview you can give us as to what's on deck for that show?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Cool. So some interesting -- and we should expect products in the wild next year with your cells in them --

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Yeah. And I would expect that these are brands that we all know. I mean, I'll just say what we've written, we've written that we think that Meta and Snap are customers. You don't have to comment, but those are two very large companies who are very much interested in this space. But that's an expectation of yours that these are big --

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Maybe to focus on defense a little bit. It's something we've talked about, something we've written about. We've -- speaking of brand names, we've written also that we think that you may be working with Anduril, which is a very exciting emerging defense company. Can you just talk about a little bit what you're working on there? And you have this Korea facility that you bought, really great acquisition in terms of price capabilities. Is it just the Korean non-silicon cell that you're selling? Or you're actually interested in other chemistries as well, the silicon chemistries?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : So it's not the 100% silicon yet. It's more what you're doing is you're doping some of it with like 5%, 6%, 7%, 8% silicon, taking your learnings from working with 100% silicon and sort of enhancing the energy density and getting into drones, subsea vehicles, you mentioned handhelds.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : And so we'll see, to your point, a steady growth in that in '26, '27 and beyond.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : And I'm curious, are you -- you've mentioned interest on behalf of the US government, but you also getting interest from allied countries, Europe and the rest of the world.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Maybe to focus on other emerging categories, something we've written about over the last few years is electric vehicles, laptops, etc. How should we think about those other markets emerging over time?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Right. Drones and defense in Korea?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Excuse me. And then 100% silicon in Malaysia?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Interesting. Can we focus on operations for a minute? So it was a journey. I remember it, you called it the journey to scale getting the agility line up with the high-volume manufacturing line up. So how should we think about progress on yields and how you feel about the operations in Malaysia right now?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Is it -- should we still think about a line -- a capacity per line about the 9.5 million for cell phone batteries and then double that for the smart glass cells?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Okay. Maybe to focus a little bit on materials. We've asked about this. We kind of touched on it with electrolyte, but there are several vendors who are trying to develop the silicon to provide to companies like yours and others who are doping it. How should we think about any supply constraints for silicon across the world? Are there any?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : That was a nice way of me asking because there are a couple of companies who are American that say they have figured out to make really good silicon, but is there any differentiation between what you're seeing here or coming from other countries from private companies there?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Are there any material constraints you're seeing because of just the state of the world, US-China relations, etc?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : And you mentioned that you've patented some trade secrets on your electrolyte solution. Are you developing that internally? Or do you use some sort of contract manufacturing scheme to make the electrolyte?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : A couple of months ago, you raised money and told us that you're thinking about making an acquisition, clearly haven't made it yet. So any update there? And how should we think about how you're thinking about what you need to see from any acquisition target? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / NTS, CF.TO - Canaccord Genuity Group Inc Fireside Chat with Enovix Corp

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : So when you announced this, it sounded like there was something that was sort of kind of imminent. Is that -- was that the wrong way to interpret the news? Or should we expect something in the first half?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : This is not the last call, but call calls ago, I remember specifically that your -- the discussion around average selling prices was much more positive than I remember in the past. And so did we interpret your tone the right way? And what are you seeing and hearing from companies that are interested in your cells like in terms of a price range for both smartphones and for smart glasses, AR/VR?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : And I forgot to ask this question earlier, so I'll ask it's a good segue into next one. How are you seeing your battery -- I know there are multiple metrics, particularly in smartphones where you have to measure performance. If your cell is successful, right, you finally get that order and you start shipping, how will that compare to what is out there right now in the marketplace in terms of performance across the board?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Maybe last one here, Raj. What do you think investors are maybe misunderstanding about the company? I mean you mentioned yourself it's taking maybe a little bit longer than you were expecting, which is typical, I think, for start-ups, which is kind of essentially what you are. But what do you think investors are missing? If you had to boil down to one or two or three bullet points?

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Got it. Well, Raj and Rob, happy holidays. Good luck at CES, and we think it's going to be an amazing 2026 for Enovix. So we look forward to it. And we'll talk to you soon. Thanks so much for your time.