Ilika plc (LON:IKA) has announced a significant advancement in its development of solid-state battery (SSB) technology. Its Stereax® production equipment, now fully operational at Cirtec Medical’s facility in Lowell, Massachusetts, has passed rigorous User Acceptance Tests (UATs). This achievement signifies that Ilika and Cirtec are confident the manufacturing infrastructure meets all requirements to commence production.
The production of Stereax batteries has already started, initially focused on internal process qualification, with plans to ship to the first 21 customers in the near future. This milestone marks an important step towards commercial sales, a transformative event anticipated to occur this year.
John-Marc Bunce, Director of Research at Cavendish, highlighted the significance of this development:
“Getting to the SOP with a licensee is a major milestone for this SSB technology. The next step of a validated product sale through Cirtec is not far away now, and this will be viewed as a major and transformative commercial milestone for Ilika.”
The initial production cycle will focus on ensuring the manufacturing process produces products that meet specifications with sufficient yields. The cathode deposition process remains at Ilika’s UK facilities, with other specialist steps outsourced, resulting in a production timeline of approximately four months. This is in line with Ilika’s objective of achieving its first third-party sales through Cirtec in the second half of this calendar year.
Ilika plc stands poised to generate revenue from wafer processing before achieving full commercial sales. This revenue stream will commence in the coming months as the company progresses towards profit sharing from product sales.
Cavendish remains optimistic about Ilika’s competitive positioning. The Stereax technology has overcome numerous technical hurdles, placing Ilika at the forefront of the global race to deliver reliable SSB solutions. Despite its discounted valuation compared to competitors, Ilika offers an attractive entry point for investors, with a target price of 83p and an upside potential of 291%.
Final Thoughts
Ilika’s progress in Stereax production represents a pivotal moment, reinforcing its leadership in solid-state battery technology. With commercial milestones on the horizon, the company is well-placed to capture significant market opportunities, demonstrating its resilience and innovation in the clean energy sector.
