Ilika PLC (AIM:IKA, OTCQX:ILIKF) looks to be heading for a turning point. After years of development work, the British battery innovator has started to bring in early commercial revenue and is now lining up what could be a big year in 2026.
A new note from Cavendish highlights how the company’s flagship Goliath solid-state battery technology is gaining traction with the automotive industry.
While full-year sales fell to £1.1 million in 2025 from £2.1 million the previous year, the latest figure includes the company’s first income from Goliath: a £74,000 deal with a top-tier car parts supplier.
It’s a modest sum, but Cavendish sees it as an important signal that industry interest is growing.
The next big test comes later this year, when Ilika is due to ship more advanced battery prototypes, known as P1.5 and P2, to potential customers.
These are expected to meet the specifications needed for formal supply chain discussions in the auto sector. If Ilika can hit those milestones, the broker believes licensing deals could follow in 2027, possibly sooner.
There’s also progress on Stereax, Ilika’s miniature battery line, which is being manufactured through a partner and should start generating revenue next year. Delays here have been balanced by the earlier-than-expected Goliath income.
The company’s financial position looks solid for now.
Ilika ended the year with £8 million in the bank, better than expected, helped by a well-supported £4.2 million fundraise.
Cavendish has nudged its target price down slightly from 133p to 130p to reflect the extra shares now in issue, but still sees strong long-term potential.
That's almost three times the current 45p share price (up 1% on the day).
Crucially, the note points out that rivals with similar technology already have billion-dollar valuations. If Ilika can land more partnerships and turn promising prototypes into real-world deals, there is room for a significant re-rating.