Ilika PLC (AIM:IKA, OTCQX:ILIKF) has received further validation of its Goliath solid-state battery (SSB) offering following the award of a £400,000 grant from the UK government's Automotive Transformation Fund (ATF), according to a research note from investment bank Liberum.
The funding aims to accelerate the development of Ilika's Goliath SSB project, which focuses on automotive applications.
The grant will be utilised to scale up Goliath's pilot production capabilities in collaboration with Mpac Group (LSE:MPAC) and the UK Battery Industrialisation Centre (UKBIC).
The partnership, which commenced on 1 October, is part of a 16-month, £2.7 million collaboration programme.
Ilika and Mpac PLC will work together to design, build and commission a 1.5 megawatt-hour (MWh) SSB assembly line.
This line is expected to be fully operational by the first half of 2025 and will be capable of delivering large-format pouch cells to automotive original equipment manufacturers (OEMs) and Tier 1 suppliers.
Liberum's note also highlights that the ATF funding aligns well with the UK government's broader green initiatives, including its 10-Point Plan for a Green Industrial Revolution and its Transport Decarbonisation Plan.
The investment bank reiterated a 'buy' rating for Ilika with a target price of 65p per share - more than double the current stock price.