Secured an order for 100,000 drone batteries, Enovix (ENVX.US) surged more than 17% after hours.

According to Jinse Finance, Enovix (ENVX.US), an American lithium-ion battery research and manufacturing company, surged over 17% after hours on Tuesday. The company announced it has received an initial purchase order for 100,000 battery units from an unnamed multinational drone system supplier, with deliveries scheduled for the first half of next year. The client is gradually expanding its use of Enovix cells, which are produced at the company's factory in South Korea that complies with TAA requirements.

Enovix stated that after the successful initial deployment, the client is expected to place additional orders for the project in the second half of 2027 and beyond.

Enovix also noted that this latest order means one of the previously disclosed $216 million potential project reserves has been formally converted into a confirmed delivery order. The company expects that more reserve projects will be converted into substantial purchase orders over the coming quarters.

“Right now, drone manufacturers are urgently seeking high-performance batteries from compliant non-Chinese supply chains, and this order demonstrates Enovix’s delivery capabilities,” said Chief Revenue Officer Steve Bakos.