Ilika Charges into Defense and E-Bikes as Goliath Finds Early Commercial Traction
Solid-state battery maker pivots from EV-only focus to non-automotive commercialization, securing initial revenue and a new product path.
IKA.L · Earnings Call · 2026-07-29
A Year of Transition
Ilika's annual results presentation on July 29, 2026, laid out a year of deliberate evolution. The company, historically centered on solid-state batteries for EVs (Goliath) and medical devices (Stereax), delivered a surprise: Stereax started generating commercial revenue, and Goliath is pivoting toward defense and e-bikes, markets that could yield income much sooner than automotive. As CEO Graeme Purdy put it, “we have effectively doubled up on the deployment of shareholder equity for our R&D program by accessing this grant funding.” — Graeme Purdy, CEO · 2026-07-29 That leverage, combined with a fresh capital raise in July, positions Ilika to convert its technology into near-term cash flow.Stereax: From R&D to Revenue
The Stereax line, which makes miniature solid-state batteries for implants and IoT, hit a meaningful milestone: the start of production of M300 cells and the first recognized revenue from electrode sales. CFO Jason Stewart noted, “Revenue was flat year-on-year at GBP 1.1 million… but within that, we've got GBP 100,000 of the first revenue starting to come through from Stereax.” — Jason Robert Stewart, CFO · 2026-07-29 This is the beginning of a licensing and profit-share model with Cirtec Medical, a U.S. manufacturer, which should accelerate as Cirtec integrates the cells into its own platforms.Goliath's New Playbook: Defense, E-Bikes, and Early Commercialization
The most striking shift is in Goliath's go-to-market strategy. While the 50 Ah cell is paused to focus resources on the 10 Ah prototype, that smaller format is finding willing buyers beyond automotive. The company has already received positive feedback from a Ministry of Defence agency, and is collaborating with Brompton on e-bike batteries. Purdy explained, “What we've decided to do is optimize the performance at the 10 Ampere prototype level and… focus some of those resources on commercialization of that 10 Ampere cell.” — Graeme Purdy, CEO · 2026-07-29 This is a clear pivot from a pure EV road map to a diversified, near-term revenue strategy. Defense, in particular, is emerging as an earlier commercial opportunity. In response to an investor question, Purdy said, “We are seeing the defense sector radically reinvent itself… from being one of the slowest moving sectors, it appears to be rapidly becoming one of the fastest-moving sectors.” — Graeme Purdy, CEO · 2026-07-29 The safety advantages of solid-state (no thermal runaway) are a key selling point, and the company is also benefiting from the geopolitical climate favoring local supply chains.Financials and Outlook
Ilika remains a development-stage company, with an EBITDA loss of GBP 6.2 million, up from GBP 5.2 million, due to higher material costs and the expensing of previously capitalized development. Year-end cash stood at GBP 5.3 million, but the subsequent July raise added funds. The company is targeting early revenue from 10 Ah MVP sales and letters of intent with non-automotive partners. While the licensing window for Goliath is still open, the tactical pivot to defense and e-bikes gives investors a more immediate catalyst than waiting for automotive design wins.The shift also raises the question of whether Ilika's e-bike and defense sector focus is a one-off or a durable strategic change. The keyword trajectory shows a clear increase in mentions of defense and e-bike in the latest quarter, alongside early commercialization and Goliath battery topics. The company is consciously avoiding head-on competition with Chinese manufacturers, focusing on applications where its solid-state USP—safety and energy density—commands a premium. As Graeme Purdy said,
Prior calls had downplayed non-EV markets: in the January 2026 call, Purdy said, “The licensing window for the technology is now open.” — Graeme Purdy, CEO · 2026-01-24 And back in early 2025, Jason Stewart had said, “Stereax will commence production in 2025 with batteries expected to commence dispatch to customers in the middle of the calendar year.” — Jason Stewart, Executive or Senior Management (likely CFO or similar) of Ilika plc · 2025-01-21 The company is now executing on those earlier promises, but the Goliath pivot to non-EV is a new development. The company also addressed tariffs, noting that its licensing model with Cirtec (U.S.-based) protects it from Trump's tariffs, a topic that is dominating global markets. Jason Stewart noted, “We are relatively well placed to avoid any impact, and that goes back to that licensing model.” — Jason Robert Stewart, CFO · 2026-07-29 Ilika is not out of the woods—its cash runway remains short, and automotive licensing is still years away—but the new non-automotive path offers a more tangible bridge to profitability. The market cap of ~£60 million suggests investors are pricing in some success, but the execution risk remains high. The continued focus on real advantage and a disciplined approach to applications could make this a stock to watch.We've always got to avoid going head-to-head with less expensive Chinese principally manufactured batteries that we're not differentiated with. So we always choose the applications very carefully so that we can emphasize the USPs of our products.