Enovix (ENVX) Jumps 11.4% on US Govt Lithium Industry Backing

We recently published 10 Stocks Stealing The Spotlight Today. Enovix Corp. (NASDAQ:ENVX) is one of the top performers on Wednesday.

Shares of Enovix Corp. jumped by 11.43 percent on Wednesday to close at $11.11 apiece as investor sentiment was bolstered by the US government’s support for the local lithium industry.

Enovix Corp. (NASDAQ:ENVX) rallied alongside its counterparts, supported by the US government’s acquisition of a 10 percent stake in Lithium Americas and its subsidiary, in line with plans to boost domestic supply and reduce the country’s reliance on imports.

The move sparked expectations that the government could be in the works for new policies to prop up the lithium industry, similar to other industries it considered vital to national security. At present, China is the world’s largest lithium refiner.

While focused on manufacturing lithium-ion batteries, Enovix Corp. (NASDAQ:ENVX) stands to benefit from the Trump administration’s initiatives to ramp up domestic lithium manufacturing, as the move could help lower prices of raw materials for companies like Enovix, which is more appealing than relying on overseas suppliers.

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Disclosure: None. This article is originally published at Insider Monkey.