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Ilika reports growing demand for its batteries for miniature medical devices

Ilika PLC (AIM:IKA, OTCQX:ILIKF) said trading for the year to April has been in line with internal expectations, with the company continuing to explore opportunities for its solid-state batteries. Still at the pre-commercial stage, revenues are expected to come in at around £0.5mln, with and an increased underlying loss of around £7.0mln from the build-out and opening of its manufacturing facility for the Stereax micro batteries. Cash and cash equivalents at the period end were £23.4mln, following the £24.7mln placing and open offer last July. After the opening of the Stereax facility in December, Ilika said process qualification is now “substantially complete”, though it said it is taking longer than previously anticipated to ensure that product batches can be reproduced to meet the exact specifications. There has been a shift in pipeline demand towards miniature medical device applications, the company added, which has a longer regulatory approval cycle than industrial sensors, including device prototyping, pre-clinical and clinical trials before regulatory approval and mass market roll-out. Due to this weighting of demand and with optimisation cycles anticipated to continue until the second half of this year, Ilika said it now expects commercial sales to begin towards the end of the financial year, which is later than originally planned. On the plus side, it said a number of the potential applications for Stereax have emerged that exceed the capacity of Ilika’s facility and provide longer-term opportunities for partnering and licensing. As for the Goliath large-format battery for electric vehicles and customer appliances, product development was said to have continued to progress to schedule. There have been “significant improvements” achieved in energy density, providing the potential for lighter-weight battery packs, and power density, which is key for rapid charging. Following the validation of its Goliath scale-up plans in a recent study, Ilika said it is continuing to “explore opportunities for closer collaboration with strategic partners interested in aligning their product roadmaps with Goliath”.