Enovix Corp ( ENVX ) shares are volatile Wednesday after rising 35% on Tuesday. Here’s a look at what’s going on.

What Happened: Enovix ( ENVX ) on Wednesday announced it signed a Memorandum of Understanding (MOU) with Elentec Co, a consumer electronic battery pack manufacturing company in Asia serving customers such as Samsung. 

Enovix ( ENVX ) said the agreement enables the company to lock in a globally trusted battery pack manufacturing partner to support its growth with target customers worldwide. The MOU also allows Enovix ( ENVX ) to fast track and utilize Elentec’s battery pack design and high-volume manufacturing capability.

“Our teams will collaborate closely to design battery packs meeting precise customer specifications. We anticipate significant opportunities to accelerate R&D and commercialization efforts through this partnership,” said Raj Talluri, president and CEO of Enovix ( ENVX ).

The two companies intend to enter a strategic partnership and collaborate in the custom development of Enovix ( ENVX ) battery cells into multiple battery packs for consumer, industrial and military applications to support both Enovix ( ENVX ) and Elentec’s key customers.

The news comes after Enovix ( ENVX ) shares rallied 35% on Tuesday after the company signed an agreement with “a leading California-based technology company” to provide silicon batteries and packs for a mixed reality headset.

Enovix ( ENVX ) said it’s set to receive a one-time payment for tooling to support battery pack dimensions immediately. The company will also receive payments for the delivery of both sample and production quantities. Enovix ( ENVX ) didn’t provide details on which tech company it’s working with.

“Devices in this market need to be light, fashionable, and safe while also supporting ‘always-on’ immersive experiences that leverage AI. Our high energy density batteries are uniquely suited to this task,” said Samira Naraghi, senior vice president of product at Enovix ( ENVX ).

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ENVX Price Action: Enovix ( ENVX ) shares were bouncing around in early trading Wednesday. The stock was down 2.09% at $15.93 at the time of publication, according to Benzinga Pro.