Shares in Strip Tinning Holdings PLC (AIM:STG), a maker of components for electric vehicles, revved up 41% to 72p after it won a major high-volume contract to make battery connectors for autonomous vehicles being developed by a large US carmaker.
The Birmingham-based company, which floated on London's junior market two years ago, will make the cell contact systems for the battery pack modules for a German automotive motion technology manufacturer. The battery packs will be used in an autonomous vehicle being developed by "one of the world's largest corporations" currently running trials on public roads in three US cities.
This seems to point to Waymo, owned by Alphabet Inc (NASDAQ:GOOG), Google's parent company. A spokesperson for the company said this guess was incorrect.
Strip Tinning says it has been working on this programme for three years, having received £1.7 million to date for pre-production work and will start production later next year, with further pre-production revenues of over £1.0 million to be received over 2024 and 2025, with annual sales value due to peak at £12.4 million and the expected lifetime value of the contract is £43 million.
It is the fourth production nomination and the largest in the battery technologies for the company "marks a major step forward towards high volume manufacture" it says, and "solidifies" its leading position in this growing mid-market segment, with other product programmes at earlier stages of development too.
Executive chair Adam Robson said: "Momentum continues to build in the business and our positioning in the battery technologies market goes from strength to strength.
"Our nominations order book in the last four months alone has nearly tripled, underpinning our medium-term ambitions and providing a very solid platform from which to grow."