Analysts have repeated backing for Ilika PLC (AIM:IKA, OTCQX:ILIKF) after news of further successful testing of its Goliath prototype solid-state battery.
Panmure Liberum reiterated a ‘buy’ rating for the AIM-listed firm on Thursday, noting the latest assessment supported the view that viable product samples would be available next year.
“The key findings from the testing programme provide further validation” of this, analysts said.
These had revolved around Ilika’s D5 prototype, with Panmure adding the latest results pushed Ilika’s battery further along the development curve toward larger 10 ampere-hour product tests.
Such solid-state batteries are slated to boast improved safety when compared to lithium-ion products, which are used to power most electric vehicles today.
This means less mechanical protection is required, Panmure highlighted, allowing lighter and cheaper units to be developed, in turn improving vehicle ranges.
Panmure also highlighted public support from EV maker BYD at last week’s World New Energy Vehicle Congress in China.
BYD’s first open support for solid-state batteries meant it had joined the likes of Chinese battery maker CATL, Volkswagen, Toyota and Nio in backing the emerging technology.
“In our view, the opportunity in Goliath is undervalued by the market, particularly given continuing progress over 2024,” Panmure said.
A 70p share price target was held, implying a near-200% upside on Wednesday’s closing value of 23.5p.