What happened

Reporting progress on the development of a new manufacturing facility, Enovix (ENVX -2.69%) charged up the bulls this week. The lithium battery manufacturer's news comes about a month after it reported strong fourth-quarter 2022 earnings.

Since the end of trading last week, shares of Enovix were up 26.1% after markets closed on Thursday, according to data from S&P Global Market Intelligence.

So what

On Wednesday, Enovix announced that it had signed a letter of intent with an investment holding company, YBS International Berhad, regarding financing and a location in Malaysia for Fab-2, the company's planned high-volume manufacturing facility. The new manufacturing line at Fab-2 is expected to be a significant improvement over that of Fab-1 located in Fremont, California. According to Enovix, the manufacturing line at Fab-2 "represents a step-change improvement in manufacturing of Enovix cells, with up to 10x faster throughput relative to the Gen1 [at Fremont] production line." Once operations ramp up, Enovix projects that the manufacturing line at Fab-2 will have an annual production capacity of 9 million units.

Enovix recently reported impressive Q4 2022 results, including a record number of battery cell shipments: 4,442. The company forecasts significant growth in shipments -- 9,000 -- for the first quarter of 2023. In the second quarter and in each quarter thereafter, Enovix projects battery cell shipments will double.

Now what

It's little wonder that shares of Enovix are flying higher this week. After reporting strong Q4 2022 earnings, Enovix is instilling confidence in investors that the company is effectively implementing its growth plans -- something further validated by the news of the recently signed letter of intent. And it's very possible that the stock won't power down anytime soon. Should the company achieve the battery cell shipment guidance in the coming quarters, shares of Enovix may very well charge higher.