Here’s an enticing mystery for you. Enovix Corporation (NASDAW: ENVX), a high-performance battery company, has signed an agreement with a leading California-based technology company to provide silicon batteries and packs for a mixed reality (MR) headset. The agreement includes an immediate payment for tooling and subsequent payments for sample and production quantities.

So, who can it be? Investors and analysts are pondering this deal. Is it Apple? Meta? Apple (NASADAQ: AAPL), based in Cupertino, makes MR headsets. They recently unveiled their Vision Pro, which combines augmented reality (AR) and virtual reality (VR) capabilities. Meta (NASDAQ: META), in Menlo Park, has its Meta Quest Pro, which can be used for MR and VR applications.

Who Is Enovix?

Headquartered in Silicon Valley, Enovix positions itself as a global player in advanced battery technology. Enovix aims to deliver high-performance batteries that unlock the full potential of IoT (Internet of Things) and mobile devices to electric vehicles. The company partners with OEMs worldwide, and they have facilities in India, Korea, and Malaysia.

This agreement builds on Enovix's strategy of focusing on strict smartphone requirements. The company's vertically integrated pack manufacturing, bolstered by its acquisition of lithium-ion battery maker Routejade, makes it competitive in adjacent markets like IoT.

Is this a big deal? Possibly so. According to IDC forecasts, the global market for VR and AR headsets is expected to grow from about 10 million units in 2024 to over 35 million units in 2028.  

The Next Big Thing In Battery Tech?

Enovix's high energy density batteries are well-suited for mixed reality devices, which require lightweight, safe, and fashionable designs that can support continuous immersive experiences. Unlike smartphones, MR headsets need uninterrupted power for processor, memory, connectivity, and display technologies.

Enovix's batteries use a proprietary process that replaces graphite with a 100% active silicon anode to achieve greater performance. The company has begun producing samples of its EX-1M silicon batteries from facilities in Fremont and Malaysia.

Are analysts excited by this new battery technology? They are. ENVX currently has a Strong Buy consensus rating from more than a dozen analysts, including Cantor Fitzgerald, TD Cowen, JP Morgan, and Oppenheimer. The consensus 12-month price target is $30.88, with a high estimate of $100. Shares are currently trading up at around $15.37.

Julie Stoller has no positions in the companies mentioned. Stocks.News has positions in Apple and Meta.