Cavendish Maintains Positive Outlook on Ilika Following Recent Fundraise

Ilika PLC, the AIM-listed developer of solid-state battery technology, has secured backing from broker Cavendish following the completion of a £4.5 million capital raise through an accelerated bookbuild priced at 28 pence per share. The company has also opened a retail offering of up to £500,000 at the same price point.

Solid-state battery technology represents a significant advancement over conventional lithium-ion cells, replacing the flammable liquid electrolyte with a solid material. This innovation delivers substantial benefits including accelerated charging capabilities, enhanced safety profiles and extended operational lifespans.

Cavendish analyst Ian McInally characterised the fundraising, which accounts for marginally below 10% of Ilika’s market capitalisation, as broadly consistent with the £5 million capital raise already incorporated into the broker’s financial projections.

The capital allocation strategy divides the proceeds between two distinct product lines. Up to £2 million will be directed towards Ilika’s compact Stereax battery platform, specifically engineered for implantable medical devices. These funds will support product optimisation activities with Cirtec Medical, the United States-based manufacturer producing Stereax under a decade-long licensing arrangement. The investment will also finance testing of the M300 battery variant to facilitate commercial sales and generate initial royalty income streams.

The remaining £3 million will accelerate development of the larger-format Goliath battery from its final technical specification phase towards licensing opportunities. This allocation includes delivery of a 10 ampere-hour product targeted at non-automotive market segments.

The company’s strategic positioning for Goliath has evolved considerably. Whilst Ilika initially oriented the technology towards electric vehicle applications, management has refocused near-term commercialisation efforts on defence and consumer sectors, where market entry timelines are anticipated to be more favourable.

Recent validation came in March when a United Kingdom defence agency provided encouraging feedback regarding safety assessments of 10 ampere-hour cells under battlefield operating conditions. This was followed in April by a joint development programme agreement with Brompton, the bicycle manufacturer, to integrate the cells into its electric bicycle range.

Cavendish noted that Goliath commercialisation efforts continue to advance, with a development pipeline encompassing evaluation agreements across 27 companies. The broker has maintained its ‘buy’ recommendation on Ilika shares, though the price target has been adjusted downward to 118 pence.