Gelion has reported further development of its Nano-Encapsulated Sulfur cathode technology and wider battery customer evaluation programmes, while audited results for the year to 30 June 2026 show that the company continues to spend heavily on research and qualification before large-scale commercial sales.
The annual figures show total income of £2.5 million, compared with £2.7 million in FY25, and an adjusted EBITDA loss of £4.4 million, against £4.1 million previously. Total income includes government grants and research tax incentives, which supported a substantial part of the company's development spending; it is not equivalent to revenue generated from commercial battery product deliveries.
Gelion's NES material encapsulates sulfur for use as a cathode active material, with the aim of replacing some conventional cathode constituents while making use of established cell manufacturing techniques. The company is pursuing compatibility with both lithium-ion and sodium-ion production architectures, but suitability for particular chemistries, anode designs and factory processes still requires testing by each partner.
Commercial qualification goes beyond laboratory cell capacity. A manufacturer must establish how a cathode performs with its selected electrolyte and anode during repeated cycling, charging and temperature variation, and whether the process can be reproduced as cell dimensions increase. Material preparation, electrode coating, cell assembly and safety testing all contribute to the transition from small samples to repeatable customer production.
In testing previously reported in March and reviewed in the annual results, Gelion's full cells with graphitic anodes exceeded 750 cycles at a 1C charge and discharge rate. In that configuration, the cathode was lithiated to act as the lithium source. The result supports ongoing evaluation within familiar lithium-ion architectures but does not establish the operating life, energy density or safety performance of a finished commercial battery pack.
The company has also tested pouch cells pairing its cathode material with lithium-metal anodes for high-power applications. Under the Advanced Propulsion Centre-supported ARMD4 programme with QinetiQ, cells completed representative drone duty cycles and demonstrated stable operation beyond 200 cycles. The mission profiles included high-power bursts relevant to flight, yet those controlled tests do not constitute a certified battery pack or an order for deployed aircraft.
Independent work with the US Department of Energy's National Laboratory of the Rockies offers another test route. Gelion reported that cells retained 92% of reference capacity when cycled at a rate twenty times the reference condition. That is a comparison under specified testing conditions, not proof of equivalent charging speed, range or lifetime in a production electric vehicle.
Material scale-up in Australia, technology licensing from Max Planck Innovation and a Nottingham solid-state pouch-cell prototyping programme form part of the manufacturing development work. Partnerships with TDK and a project lasting three years involving Nissan Technical Centre Europe and the University of Oxford are intended to examine how the cathode material performs in different cell designs. These programmes remain development and validation activities rather than disclosed mass production contracts.
A £2 million funded development and scale-up agreement with Mitsui Kinzoku is also reflected in the results. It was originally announced on 7 August 2026, so the new financial report is not the date of the agreement. Mitsui and Gelion are evaluating the cathode material for several potential markets, with funding linked to technical work and commercial scale-up assessments.
Two automotive engagements have broadened evaluation of NES material. Gelion identified one testing arrangement with a manufacturer ranked among the world's top fifteen, and a separately funded proof-of-concept programme with a top-five manufacturer, without naming either. Neither arrangement establishes an approved vehicle battery supply contract, a customer production forecast or a specified date for mass manufacture.
Gelion reported pro forma cash and equivalents of £9.6 million and no debt on that measure, following its previous fundraising. The pro forma figure is not the same as period-end statutory cash, while an adjusted EBITDA loss also differs from a statutory net loss. These accounting distinctions are material in assessing how development funding and research expenditure support the company while commercial qualification continues.
Further progress will depend on sustained cell performance under customer testing, reliable production of cathode material at larger scale and agreement on manufacturing specifications. Gelion expects some contributions from funded development in FY27, but has not announced a start date for full commercial mass production. Partner test results and milestone deliveries will provide clearer measures of how much of its laboratory work converts into recurring business.
