Ilika PLC’s (LON:IKA) confirmation of a twelve month, US$1mln, materials development deal with Toyota is good news for the company especially with the prospect of further collaboration, says Zeus Capital.
The broker adds that as it is an ‘initial’ project, follow-on and related programmes in the same application area are likely.
Zeus adds this is described as ‘game changing energy materials’, which the broker speculates is fuel-cells, considering the deal is with Toyota and therefore automotive related.
Ilika already has extensive collaboration with Toyota as a customer in the electric vehicle battery space, it notes.
The strength of the relationship with Toyota, and the belief the Japanese car giant has in Ilika’s world-class materials discovery platform has also been underlined while the core rapid materials development and optimization model for blue chip clients is clearly in good health.
Shares were flat at 49p.