Enovix Corp (NASDAQ:ENVX) shares are trading higher Tuesday after the company announced it completed site acceptance testing of Fab2 and secured a landmark purchase order.

What Happened: After the market close on Monday, Enovix announced it completed site acceptance testing for its high-volume manufacturing line at Fab2 in late December. The battery manufacturing company plans to begin mass production later this year.

The site acceptance testing validates the readiness of the company's manufacturing equipment and marks the final stage of factory acceptance testing before commercial-scale production begins. Shares jumped about 5% on the news.

Tuesday morning, Enovix announced it received a sizable pre-paid purchase order from a Silicon Valley-based global technology leader in AI and immersive technologies. The company said the order is for a battery solution tailored for next-generation head-worn mixed reality wearables.

"I'm incredibly excited for Enovix to be selected by another leading OEM in this emerging space," said Enovix CEO Raj Talluri.

"This is a defining moment for Enovix. It not only adds meaningful contracted backlog for Fab2 in Penang, Malaysia, but also firmly establishes Enovix as a trusted partner for custom battery development with one of the largest and most influential companies driving AI and MR innovation."

Enovix said it's scheduled to deliver initial shipments by mid-2025 under terms of the agreement.

ENVX Price Action: Enovix shares were up 17.3% at $14.61 at the time of publication Tuesday, according to Benzinga Pro.

Photo: 3844328 from Pixabay.