Ilika plc (LON:IKA), a trailblazer in the development of solid-state battery technology, continues to solidify its position as a leader in the energy storage sector. A recent trading update prepared by Panmure Liberum highlights significant progress across the company’s core projects, setting the stage for exciting milestones in 2025. Analysts Lacie Midgley and Oliver Swift reiterate their BUY recommendation with a target price of 70p, emphasising Ilika’s remarkable potential in both medical and automotive markets.
Solid Progress in Medical Batteries
One of Ilika’s standout projects is its Stereax division, which develops solid-state batteries for active implantable medical devices (AIMDs) and wireless sensors. This niche market presents a lower-risk, high-impact opportunity for the company. Recent updates confirm that Ilika, in collaboration with Cirtec Medical, is preparing for the commercial rollout of its M300 battery in 2025. Analysts noted, “Ilika has focussed on commissioning and running trial batches of batteries to qualify the Stereax manufacturing process,” ensuring readiness for full-scale production and meeting customer demand.
The integration of Stereax batteries into Cirtec’s sub-assemblies creates a streamlined, cost-effective solution for MedTech customers, reducing time to market. The company is also actively engaging with a portfolio of 21 customers, jointly promoting its capabilities at major US conferences in early 2025.
Automotive Advancements with Goliath
Ilika’s Goliath project, targeting the electric vehicle (EV) market, has made substantial strides, capturing the interest of global automotive giants. Over the last period, the company achieved critical milestones, including shipping its P1 prototype batteries to a tier-1 customer and third-party verification of safety data. These prototypes demonstrated “significant improvements compared to commercially available EV batteries,” underscoring the competitive edge of Ilika’s technology.
With the D8 milestone and MVP samples on track for completion in 2025, the Goliath project is poised to unlock lucrative licensing opportunities with top-tier OEMs. Panmure Liberum highlighted that Ilika is also exploring non-automotive applications for Goliath, potentially diversifying its revenue streams through high-margin sectors.
Valuation and Future Outlook
Despite its promising technological advancements, Ilika’s valuation appears disconnected from its potential. The analysts noted a stark contrast with US-listed QuantumScape, valued at $2.5 billion, despite comparable technology readiness. This discrepancy presents an attractive entry point for investors, especially as Ilika continues to narrow the gap toward commercial viability.
Looking ahead, the company’s strong cash position, disciplined management, and strategic partnerships position it favourably to capitalise on upcoming market opportunities. The analysts assert: “Our unchanged target price of 70p suggests nearly 500% upside from the current share price of 14p, with several share price catalysts expected over the next 12 months.”
Final Thoughts
Ilika’s unwavering commitment to innovation in solid-state battery technology, coupled with its strategic focus on medical and automotive markets, reinforces its standing as a company with significant growth potential. With key milestones in sight for 2025, investors can anticipate a rewarding journey ahead. As Panmure Liberum aptly summarises: “We continue to believe that investors can look forward to some of this value being reflected in the share price in the short-term.”
