Enovix Corp ( ENVX ) shares are trading lower on Tuesday afternoon, caught in a sector-wide downturn following news of an impending increase in the global lithium supply. Here’s what investors need to know.

ENVX is taking a hit from negative sentiment. Get the market research here.

What To Know: The sell-off follows reports that battery manufacturing giant CATL is set to resume operations at its significant Jianxiawo lithium mine in China. The prospect of this major mine restarting production is expected to increase the global supply of lithium, which in turn puts downward pressure on the price of the critical battery metal.

While lower raw material costs can often be seen as a positive, investors on Tuesday appear more concerned about the broader implications. The market could be interpreting the potential for cheaper lithium as a deflationary signal for the entire battery industry.

This suggests a future of lower battery prices, which could compress profit margins and reduce overall revenue forecasts for companies across the sector, including Enovix ( ENVX ), prompting Tuesday’s move lower.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Enovix ( ENVX ) currently holds a Momentum score of 71.34.

ENVX Price Action: According to data from Benzinga Pro, Enovix ( ENVX ) shares are trading lower by 3.42% to $9.07 on Tuesday at publication. The stock has a 52-week high of $16.49 and a 52-week low of $5.27.

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How To Buy ENVX Stock

Besides going to a brokerage platform to purchase a share — or fractional share — of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For Enovix ( ENVX ), it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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