Enovix Targets Defense Industry Growth Amid Rising Demand for Secure Battery Supply Chains

Enovix

US-Based Battery Maker Leverages Allied Supply Chain Compliance for Competitive Edge

Drone and Defense Sector Inquiries Rise Post-Election

Enovix, a US-based battery manufacturer, is actively pursuing growth in the defense industry as it seeks to capitalize on its robust supply chain and technological strengths. The company reported a $222 million loss in 2024, widening from the $214 million loss in 2023, but sees clear momentum in new market opportunities.

Defense Sector Interest Accelerates Revenue Shift

A significant portion of Enovix's 2024 revenue now comes from conventional graphite battery products supplied to the defense sector. According to CEO Raj Talluri, the firm is prioritizing segments with acute battery constraints or supply chain requirements that play to Enovix’s strengths. Although Enovix remains committed to its core markets in smartphones, wearables, and laptops, the company is adapting to shifting demand.

Following the US elections in November, Enovix observed a marked increase in interest from drone manufacturers and defense suppliers searching for battery solutions that meet allied-country supply chain requirements. These requirements have become critical amid global security concerns and evolving trade policies.

Global Production Footprint Shields Against Trade Headwinds

Enovix manufactures batteries in South Korea and Malaysia, with research and development based in India. Talluri noted that both manufacturing locations are highly favorable for US-bound shipments, minimizing exposure to international trade friction. This diversified production base provides Enovix with stability and ensures compliance with allied procurement standards—a crucial advantage for defense-related contracts.

The company’s evolving strategy highlights a broader shift as defense customers demand not just advanced battery technology, but also secure, traceable supply chains. Enovix’s positioning in this arena could be key to offsetting continued financial losses and unlocking future growth.