A Solid State of Progress: Ilika’s Year of Battery Breakthroughs
Ilika’s full-year results for FY2025 paint a picture of a company hitting critical inflection points in both its miniature and large-format solid-state battery divisions. While the financials reflect the expected burn rate of deep-tech development, the operational milestones tell a more compelling story about the road to commercialisation.
Stereax: Medical Marvels Moving Stateside
The transfer of Stereax manufacturing to Cirtec Medical’s Massachusetts facility marks a pivotal shift from R&D to commercial execution. Think of this as handing over the blueprint to a specialist manufacturer who can scale production while Ilika focuses on refining the IP. Key developments include:
- Equipment installation completed at Cirtec’s expanded cleanroom, with cathode manufacturing still UK-based as a subcontract service
- Trial batches underway to qualify the manufacturing process before commercial M300 sample deliveries later this year
- A growing pipeline of 21 active medical device customers across neurostimulation, smart orthopaedics, and biometric sensors
CEO Graeme Purdy’s note about Stereax facing “very little competition” in implantable medical devices is significant. Unlike the crowded EV battery space, this niche leverages Stereax’s safety profile and miniaturisation advantages where conventional batteries simply can’t compete.
Goliath: Charging Toward the Automotive Arena
While Stereax targets medical implants, Goliath aims squarely at the electric vehicle market. The past year delivered validation Ilika desperately needed:
- Successful customer testing of P1 prototypes confirming performance claims (energy density, rapid charging)
- Third-party safety validation including nail penetration tests – a critical hurdle for automotive adoption
- Completion of the £8.2m HISTORY project with BMW and Fortescue, yielding a 50Ah prototype
- Progress on the SiSTEM project with UKBIC and Agratas (Tata Sons) to scale electrode production
Perhaps most impressively, Ilika’s electrolyte performed well when coated on giga-scale equipment at UKBIC – a strong signal that their chemistry plays nicely with industrial manufacturing processes.
Financials: The Burn Before the Turn
Let’s not sugarcoat it: the numbers show a company still spending heavily to reach commercialisation:
- Revenue: £1.1m (down from £2.1m in FY24), primarily from grants and initial Goliath evaluation cells
- EBITDA loss: £5.2m (wider than £4.1m loss last year)
- Cash position: £8.0m at period end (down from £11.9m)
The post-period £4.2m fundraise provides crucial runway. Combined with new £1.25m DRIVE35 grant funding, this should support operations through key 2025 milestones:
- Stereax product revenue recognition starting CY2025
- Goliath MVP (P2 prototypes) completion by end-CY2025
- Pilot line capacity expansion to 1.5 MWh/year for automotive RFQs
The Road Ahead: Voltage Rising
Two threads stand out in Ilika’s narrative:
1. Capitalising on Asymmetrical Competition
Stereax isn’t fighting the battery wars on multiple fronts. Its medical focus creates a protected niche where performance trumps cost-per-kWh metrics. The Cirtec partnership effectively outsources capital-intensive manufacturing while keeping IP close.
2. Automotive Credibility Building
Goliath’s progress from lab curiosity to producing third-party validated cells on industrial equipment changes the conversation. The 21-company evaluation pipeline suggests serious industry interest, while collaborations with Agratas hint at future gigafactory pathways.
Chairman Keith Jackson’s blunt assessment resonates: validating nail penetration tests isn’t a “party trick” – it’s about designing out the heavy safety cages required for liquid batteries, directly impacting EV weight and range.
Risks & Realities
Commercialisation timelines remain Ilika’s biggest challenge. Medical device approvals are glacial, and automotive qualification cycles run on “auto industry time.” The £8m cash position post-fundraise buys maybe 18 months of runway at current burn rates. Hitting Stereax revenue targets in 2025 and securing Goliath licensing deals are non-negotiables.
That said, the patent portfolio expansion (78 granted patents, plus 4 new filings) builds valuable moats. And the maintained ISO 14001 and 9001 certifications signal operational discipline beyond typical AIM tech hopefuls.
The Bottom Line
Ilika’s playing a long game in two massive markets – medical implants and EV batteries – with solid-state technology that genuinely differentiates. FY2025 wasn’t about profits; it was about proving both technologies can transition from promising science to industrial processes. The next 12 months must transform technical validation into commercial contracts. For investors comfortable with deep-tech timelines, the voltage here is steadily rising.
