Ilika PLC (AIM:IKA, OTCQX:ILIKF) has signed a memorandum of understanding for the manufacture of its Stereax mini solid-state batteries to switch to partner Cirtec Medical’s facilities in Massachusetts, US.
Instead, Ilika will focus on advanced technology development and IP licensing, while Cirtec will focus on system level miniaturisation for medical devices.
In a statement, Ilika added that switching production would also bring economies of scale and an ability to ramp up output quickly.
Formal contracts are expected to be signed once final terms have been agreed, the statement added.
Graeme Purdy, Ilika's chief executive, said: "Our partnership with Cirtec reinforces a pathway towards commercialisation of our Stereax battery technology.
“Cirtec brings a wealth of manufacturing experience and a strong track record of successful product commercialisation in the medical device industry."
Brian Highley, Cirtec’s CEO, added: "With over 20 years of experience in the design, development and manufacturing of medical devices, Cirtec is uniquely poised to work with Ilika in bringing its Stereax battery technology to market.”