What happened

Shares of Enovix (ENVX -1.75%) had skyrocketed more than 32% by 1:28 p.m. ET on Thursday. Powering the battery development company's surge was news that it had reached several significant customer milestones in the second quarter.  

So what

Enovix, the leader in silicon lithium-ion batteries, started shipping commercial cells in the second quarter, enabling it to finally begin recording revenue.

It reported $5.1 million of service revenue and a small contribution from commercial battery-cell sales. That achieved the company's yearlong objective of recording its first product revenue from its Fab-1 facility in Fremont, California.

The commercialization of the company's next-gen battery is driving an acceleration in engagement with customers. The company added a dozen new accounts in the quarter, bringing the total to more than 75. 

Enovix also announced that it had won a follow-on contract to build and test custom cells for the U.S. Army. The wearable battery cells would be part of a soldier's vest and would power communications and navigation equipment.

Now what

Enovix is finally starting to monetize its battery technology. That's the first step of many that it hopes will capitalize on the enormous need for improved batteries to power technology and to help enable more widespread use of renewable energy.

The company is still in the very early stages of developing and commercializing its technology. That makes it a very high-risk investment, though one with significant upside potential given the vast market opportunity ahead for batteries.