Ilika (AIM: IKA) has entered into commercial discussions with two 3rd party fabrication facilities in regard to its manufacturing plans for Stereax, its miniature solid-state batteries.
In a trading update in June, the solid-state battery technology firm told investors that it had issued requests to four 3rd party fabrication facilities (FABs), two in Europe and two in North America, to prepare for the selection of its preferred partner for its product, Stereax.
The company said that it aims to conclude these discussions in the last quarter of 2020.
Ilika’s Stereax solid state battery technology powers wireless sensors and enables solutions for applications such as Industrial IoT (Internet of Things), MedTech and electric vehicles.
Ilika was awarded a contract back in May - Tool 1 - for the most significant long-lead equipment item. Tool 1 is a custom-designed evaporation tool for the rapid deposition of cathode materials for Stereax batteries and is expected to be ready for delivery in Q4 2020.
Shares in Ilika have climbed from lows of 56.40p in the past month and were trading 1.16% higher at 87p this morning following the announcement.
Tool 1 will enable rapid deposition of cathode materials for Stereax batteries with a 70x production increase from the current pilot line, producing up to thousands of wafers a year.
Ilika has now placed an order for Tool 2, which deposits the remaining battery layers on top of the cathode. The delivery is synchronised with Tool 1 to ensure optimal deployment of capital.
Meanwhile, the group said it has strengthened its Senior Management team by appointing Paul Marron as Technology Transfer Director to oversee Ilika's process at FAB scale.
"We remain entirely focused on agile project execution as we prepare our Stereax technology to meet the rigorous demands of full commercialisation,” said Ilika's CEO Graeme Purdy.
He added, “We are pleased to report that everything is on schedule, post shareholder support from the recent capital raise, despite challenging economic market conditions and the constraints of the pandemic."
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