Korean advanced silicon battery manufacturer, Enovix Corporation has acquired Routejade, a privately-held and established battery manufacturer in Korea. The acquisition involved approximately 6.2 million shares of Enovix common stock and US$16.5 million in cash for 100% of Routejade.

Mainly, the acquisition provides Enovix with vertical integration of electrode coating and battery pack manufacturing. Also, it adds an established lithium-ion battery business with factories in Korea, along with complementary products, customers, and suppliers. The companies target to consummate the transaction in the fourth quarter of 2023 and be immediately accretive.

Routejade has been qualified as a supplier of coated rolls of electrodes for Enovix batteries with capacity to support the Fab2 scale-up that begins in 2024. By bringing coating capability in-house, Enovix intends to realize significant cost savings. Also, it will speed up battery development cycles with the quick integration of modern materials to improve energy density. It also intends to secure the coating supply chain to ensure the quality of incoming battery materials. This will positively impact manufacturing yield and throughput.

For its part, Routejade brings over 20 years of experience as a manufacturer and supplier of lithium-ion batteries. It targets end markets such as wearables, hearables, medical, industrial, and the South Korean military. Also, its patented encapsulation technology allows for circular and asymmetric battery form factors. This complements the ability of Enovix to support multiple customer requirements.

“This is a compelling acquisition with a strong ROI profile for Enovix given the obvious financial benefits of vertically integrating coating. At the same time providing our R&D team quicker access to new materials to enhance our product roadmap and benefit customers,” said Dr. Raj Talluri, President and CEO of Enovix. “My vision is for Enovix to grow our battery performance metrics at a significantly faster rate than the industry by harnessing the materials agnostic nature of our architecture and this transaction accelerates our ability to execute that plan.”

Continued Dr. Talluri, “We are also making tremendous strides in manufacturing with yield gains in Fremont, which positions our Gen2 equipment for a strong start in 2024. We have been very impressed with Routejade’s coating know-how and believe it will only improve our ability to deliver competitive yields while producing batteries in high volume at an attractive cost structure.”

Routejade is led by CEO Kihong Park, with approximately 30 years of experience in Li-ion battery manufacturing businesses in Korea. This included a 21-year tenure at Kokam (now SolarEdge Energy Storage Division), where he served in roles such as CTO and COO. Park will report to Dr. Talluri and continue to run the Routejade business.

“We are excited to join Enovix, a truly revolutionary company in the lithium-ion battery industry,” said Park. “The growth prospects for this business are substantial, and we look forward to playing an important role in Enovix’s journey to scale.”