19 March 2025

Gelion plc

("Gelion" or the "Company" or the "Group")

Interim results to 31 December 2024

Gelion (AIM: GELN), the global energy storage innovator, announces its unaudited interim results for the six months ended 31 December 2024 (H1 FY25), a period in which the Company made significant technical and commercial progress, including signing commercial orders to generate revenue and gross margin to be recognised in the second half of FY25.

Operational highlights

Financial highlights

Post-period end

John Wood, CEO of Gelion, commented: "H1 FY25 marked significant progress in strengthening our technological position in sulfur-based battery development. We have successfully unified Gelion's talent and expertise-including OXLiD and the extensive ex-Oxis IP portfolio acquired from Johnson Matthey-into a single, focused sulfur technology development program. This consolidation is delivering promising test results, reinforcing our confidence in Gelion's role in the anticipated breakthrough trajectory for sulfur chemistry.

"At the same time, we have started building revenue and margin through our Integration Solutions business unit. This initiative leverages Gelion's deep battery expertise to enhance solution engineering while providing valuable real-world application insights that feed back into our own battery technology development. Additionally, we see strong synergies between our integration activities and the supply chain partnerships we are developing for our own battery technologies as they mature.

"We are confident that 2025 will validate the value of our combined focus-advancing technological leadership in sulfur technology while driving commercial success through strategic collaborations and direct sales in our integration efforts."

CONTACTS

About Gelion

Gelion ("gel: ion") is a global energy storage innovator, supporting the transition to a more sustainable economy by commercialising two globally important next generation technologies: Lithium-Sulfur (LiS) and Zinc-based (Zn) hybrid cells to electrify mobile and stationary applications. Gelion plc (the Group) is listed on the London Stock Exchange's Alternative Investment Market and wholly owns Australia based Gelion Technologies Pty Ltd and UK based OXLiD Ltd. Gelion is designing and delivering innovative battery technologies and integrated systems solutions to enable that transition and return value for its customers and investors.

Lithium Sulfur

Gelion's effort is directed at the potential for the Li-S chemistry to deliver double the gravimetric energy density of standard Lithium-ion chemistries, whilst concurrently reducing cost and increasing safety, targeting the EV and e-aviation market, helping to make global transport, energy consumption and storage more sustainable.

Gelion is developing a GEN 3 Lithium-Sulfur cell product for its high energy density sulfur cathode at its expanded R&D facilities in Australia and UK, enabling it to integrate with a variety of anodes ranging from graphite to silicon to lithium-metal, depending on the targeted application.

Gelion's GEN 3 cell unlocks the potential of sulfur batteries for a wide range of global mobile applications including electrical vertical-take-off-and-landing (eVTOL), drone markets, electric vehicles (EVs) and stationary energy storage (ESS).

Advantages of Gelion's GEN 3 Lithium Sulfur

·       High energy density - Energy density > 400 Wh/kg, when using a 10+ Ah pouch cell.

·       Semi-solid-state / Solid-State as a route to increased longevity/cycle life: GEN 3 employs a semi-solid-state and solid-state mechanism which mitigates the major degradation factor associated with conventional Li-S technology.

·       Improved safety - Sulfur technology may be more stable at high temperatures, minimising risk of thermal runaway related fires and explosions.

·       Increased sulfur utilisation: GEN 3 demonstrates the full theoretical capacity of sulfur, i.e. a much higher sulfur utilisation than found in conventional Li-S approaches.

·       Simplified supply chain: The innovative cathode is produced by mixing commercially available materials with abundant sulfur using a low-energy, room-temperature process, with potential to eliminate the need for pre-fabrication of the sulfur composite (sulfur composite is related to cathode active material in conventional lithium-ion batteries), streamlining the associated supply chain and production process and enabling localised manufacturing.

·       Environmental and economic benefits: The water-based, standard-atmosphere cathode production process eliminates the need for toxic solvents, leading to significant cost savings and enhanced manufacturability.

Glossary

Zinc

Gelion is adapting its zinc technology to comprise an alternate cathode technology, a zinc hybrid cell to develop complementary next-generation batteries for the lead-acid eco-system. Early testing indicates that this solution has the potential to maintain good energy density levels with enhanced cost and safety aspects. Once fully developed, Gelion intends for our zinc technology to provide a durable and sustainable market extension within the ecosystem that supports lead-acid batteries.

Recycling

Gelion is pioneering an innovative battery recycling technology, focusing on lithium extraction and designed to enhance and supplement current recycling methods. Our technology aims to significantly reduce the initial costs of recycling plants, minimize waste, and lower carbon emissions, while improving the purity of metal products and enabling efficient lithium extraction. This advancement will allow for a broader range of scrap materials to be recycled. Currently in the feasibility stage, Gelion is committed to advancing our technology to a pilot-scale demonstration, paving the way for commercialisation through material production and IP licensing.

Integration

Gelion leverages its significant integration and BMS capability to deliver bespoke BESS for Australian customers. These BESS are currently based on lithium-ion technology and will also include Gelion's next-generation batteries as these become available. Gelion will deploy BESS with our proprietary cloud-based battery monitoring system, which will provide real-time diagnostics and alerts to maximise performance and return on investment for our customers.

Chief Executive Officer's statement

Gelion made significant progress in the first half H1 FY25, successfully achieving key technological milestones and strategic objectives while actively reducing its cost base. We have continued to implement our strategy, focusing activities towards acceleration of our core Li-S technology and Integration Solutions business divisions. This has allowed us to effectively use our resources, delivering on both operational milestones and cost efficiencies.

We recognise the exponential growth requirement in both mobile and stationary energy storage to facilitate the global energy transition, and resulting need for low-cost, readily available, and scalable storage technologies. Gelion remains committed to delivering energy storage solutions that support this transition and capitalise on the immense opportunity that this transition presents for our shareholders.

Gelion is focused on expanding and developing our global cooperation network. We continue to foster and strengthen commercial partnerships through technology and material collaborations. In addition, the team continues to work towards realising independent funding by partnering with strategic investors, which will facilitate the introduction of our innovative technologies to market.

Technological progress

Li-S Battery Technology

We achieved several key milestones with our Li-S technology in H1 FY25. This included successfully meeting our initial energy density target through the production of a 12 Ah pouch cell with an energy density of 402 Wh/kg. This is over 60% higher than the gravimetric energy density currently attainable with a lithium-ion battery (i.e. Li-NMC) of equivalent capacity. This was a significant achievement and clearly demonstrates one of the main advantages of a Li-S battery over incumbent technologies.

Gelion has purposefully designed its sulfur-based cathode technology to support the future evolution of battery solutions. While our current GEN 3 Li-S technology pairs our cathodes with a lithium metal anode and our proprietary liquid electrolyte, we believe that our cathodes offer broader optionality. This includes expected compatibility with alternate anode technologies such as silicon-based anodes as well as solid-state electrolytes. Although our cathode material demonstrates wide compatibility, further optimisation may be required to achieve performance objectives based on the full cell composition, particularly given the fundamental differences between liquid-based and solid-state technologies.

The broad compatibility of our cathode ensures Gelion remains forward focused toward expanding its product range to target a range of market segments. Gelion's strategy is to achieve this while simultaneously controlling the scope of expenditure typically required to bring additional products to market by leveraging our existing technology and expertise to collaborate with partners rather than reinventing within and across the existing supply chain.

In November 2024, we successfully fabricated an advanced solid-state electrolyte separator (SES), which used intellectual property (IP) licensed from Oxford University Innovation Limited. SESs are a recognised approach to mitigate key safety concerns for lithium metal-based batteries. Our approach produces an ultra-thin, lightweight SES using readily scalable manufacturing processes. This has the potential to significantly enhance cycle-life and increase energy density, not only for our GEN 3 Li-S batteries but also for other existing lithium metal-based lithium-ion technologies. This development provides an approach that bridges the gap between traditional liquid electrolyte-based batteries and the next-generation all-solid-state technologies. Gelion will continue to work to develop and validate this technology.

Gelion has also recently initiated research to validate the applicability of our cathode technology for an all-solid-state system. We were pleased to update our shareholders as to our progress in this direction post-period end. Gelion engaged a renowned European research institution to conduct independent testing that employed our GEN 3 cathode materials in a solid-state battery. This research confirmed the compatibility of our cathodes for pairing with solid-state electrolytes. This development means Gelion has a technology with the potential to complement and establish a significant market presence alongside traditional Li-ion cathode chemistries (e.g. NMC or LFP).

In summary, in H1 FY25, we successfully demonstrated a high energy density for our GEN 3 cathode while also substantiating its broader compatibility. It is anticipated that these developments will result in safer, longer lasting, and lighter batteries, while also accelerating Gelion's expansion across a range of battery technologies. These technological advancements bring us closer to offering high-performance, cost-effective solutions for electric vehicles, drones, and energy storage systems.

Australian Renewable Energy Agency (ARENA)

In December, Gelion was awarded a c.£2.5m (A$4.8m) match funding grant by ARENA. This Australian government grant initiative will provide funding for the construction and operation of our planned Advanced Commercial Prototype Centre (ACPC) in Sydney. The ACPC Project will provide Gelion with new capabilities, facilitating the optimisation of both our technology and manufacturing processes. The produced next-generation batteries will be provided to prospective global partners and customers for testing and performance validation.

The ACPC Project is due to commence upon Gelion securing appropriate co-funding. As such, our short-term focus is to secure additional supportive investment, which we aim to achieve by securing a strategic investor to co-fund the Australian government grant and the general working capital of the business.

This marks an important stage in our growth, linking our advanced battery solutions with a global network of partners committed to commercialisation. The support of investors and government agencies, like ARENA in Australia and the Faraday Institute in the UK, empowers us to deliver on our vision, create value, and solidify Gelion's position in the evolving battery technology space.

Integration Solutions

In October 2024, we launched our Energy Storage Integration Solutions business, and secured the first commercial order, signing a £1 million contract to supply two battery energy storage systems (BESS) to Group Energy Pty Ltd, part of the Borg Group. This initial project is expected to be successfully delivered in the coming months, with the revenue and profit to be recognised in the current financial year (FY25).

Our focus is on successfully delivering these first integration solution systems, prior to firmly committing to other commercial orders. This will allow us to develop our cloud-based monitoring systems, while simultaneously strengthening third-party collaborations and establishing product pipelines. This measured approach will enable us to continue to build this business from the initial commercial success. We are building our pipeline as we have received interest in our integration solutions from other parties with discussions for orders ongoing.

While the current products employ commercially available lithium-ion batteries, this develops capabilities, establishes partnerships, and lays the foundation to bring our own technologies to market. This business will enable Gelion to build consumer confidence through a proven record for delivering projects, facilitating the commercialisation and introduction of our proprietary storage technologies to the market.

Technology Incubation

The Board recognises the prospective value and market opportunities inherent in both its zinc-based battery and battery recycling technologies. While we see clear potential in these two technologies, these require capital investment to attain market readiness. Therefore, in accordance with Gelion's strategic plan, we are currently incubating these technologies, reducing costs, accessing non-dilutive capital while we explore opportunities for independent investment. This approach will provide the best chance for success, while remaining cost effective and enabling the team to focus its efforts towards the progression of the Group's core businesses, being Li-S and Integration Solutions.

Battery Recycling

In H1 FY25, we also launched a new UK subsidiary, Battery Minerals Ltd, with the aim to commercialise the intellectual property (IP) portfolio acquired from Johnson Matthey in 2023. Battery Minerals' technology focusses on developing lithium-first approach for the recovery of valuable metals from end-of-life batteries.

Battery Minerals was awarded a grant of up to £170,000 as part of the Advanced Propulsion Centre UK's (APC) TDAP. This funding was used to support a market-focused study, involving in-depth techno-economic modelling and the development of a product strategy with support from industry partners. As a result, we have established the commercial viability of our recycling approach and identified clear pathways to commercialisation for this technology.

I am pleased to report that, post-period end, we were successful in our application to Phase Two of this programme. This provides an additional £100,000 in grant funding, with Battery Minerals additionally being awarded a £75,000 booster grant. Progression to Phase 2 of the programme indicates the validation from the APC and partners for Battery Minerals technology's potential and recognising the commercial traction achieved.

Phase 2 of TDAP, running between February 2025 and November 2025, focuses on 'Technology Validation' and will involve further development of the recycling process with partners to increase the technology-readiness level ("TRL") and potentially support a feasibility study for a larger scale pilot plant.

Zinc-based Technology

Gelion is continuing to develop our zinc-hybrid battery, with the goal to deliver a cost-effective, non-toxic and safe cell that could complement and extend the existing lead-acid ecosystem. Lead acid batteries are made in the majority of geographic regions around the planet and the path our team has established has potential to match the low cost/kWh of Lithium-Ion cells made in China. 

This provides an option to extend the productivity of the lead acid ecosystem producing zinc cells in country with a low capital entry path rather than importing Lithium Ion.  The Gelion research team has made considerable progress over the last half year, developing approaches to address key challenges with this technology.

While Gelion continues to incubate and develop intellectual property with this technology, we are actively working in parallel towards securing independent investment, with an aim to achieve an investment agreement by H2 FY25.

Board and people update

In January, we were pleased to welcome Dr Graham Cooley, as a Non-Executive Director of the Company. Graham offers a valuable and diverse perspective to the Board through his extensive experience in the commercialisation of innovative technologies, knowledge of processes surrounding publicly listed companies, and a fundamental understanding of the science behind Gelion's products.

The Company continues to monitor its cost base and has taken further measures with an annual estimated cost savings of c.£0.5m. These are in addition to £1.1m cost savings delivered in FY24. The H1 FY25 measures include:

·      Directors' voluntarily agreeing to a reduction in their fees between 40% and 80% and

·      a £0.4m reduction in salaries due to a reduction in headcount (one-off costs of £0.12m) and other discretionary costs in the business.

Outlook for H2 2025

Looking ahead, I am focused on driving our strategic plan forward, realising industry technology leadership for Gelion, and building on the generic talent of our research teams, leveraging the acceleration made possible as a result of acquisitions of the last 18 months. I am also focused on driving product/market fit for the outcomes of that effort, and building on this by developing collaborations within the supply chain that will support the path to capital light commercialisation. In the short-term, additional capital investment will be required for continuing development while Gelion progresses opportunities for partnerships with strategic investors to enable realisation of our long-term objectives. In parallel, we will continue to develop and strengthen collaborations with key technology partners and potential customers.

We remain well positioned to meet our performance objectives, primarily our cycle-life and stability, with significant progress made towards realising minimum viable product ("MVP") performance targets. Preparations are underway to develop in-house battery prototype manufacturing capabilities. This will leverage Australian government support (both capex and operating expenditure) to facilitate the production of pre-pilot volumes prior to an expansion towards licensing and contract manufacturing.

I have been incredibly encouraged by the substantial technological advancements that have already been made to date this financial year. This would not have been possible without the extraordinary dedication of our team, and I would like to recognise their efforts toward driving Gelion forward. I also thank our valued shareholders and all our partners, who are joining us in our endeavours and our dedicated directors for their commitment, support, availability, valuable input, and stewardship.

I strongly believe that our innovative technology and the vast expertise present in our team provides Gelion with enormous opportunities, particularly with the growing global recognition of the importance of Lithium Sulfur technology and of its ability to first deliver high value niche applications building on its high energy to weight "lightness" as a battery and then to grow quickly alongside lithium ion toward its full potential to form a significant share of the storage market building on its abundance and potential for low cost. We look forward to playing a pivotal role in the global energy transition, steering in the next-generation energy storage solution.

John Wood

CEO

19 March 2025

Chief Financial Officer's review

Overview

H1 FY25 was a strong period for the Group, defined by major technological progress and the strategic launch of our Integration Solutions business. This expansion positioned us to seize key commercial opportunities, resulting in Gelion's first £1 million order. Importantly, we achieved this while continuing with the cost discipline and strengthening our commercial operations.

Interim results

The H1 FY25 interim results include OXLiD's full six-month financial performance, compared to just one month in H1 FY24 following its acquisition on 30 November 2023.

Maintaining financial discipline remains a top priority for the management team. Despite incorporating six months of OXLiD's operating costs in this period, the Group's cost base in H1 FY25 remained largely stable, increasing by just £0.1m (3.1%). On a like-for-like basis i.e. if H1 FY25 included only one month of OXLiD's costs-the Group has effectively reduced its cost base by approximately £0.3m, demonstrating continued financial prudence.

I have summarised the key financial highlights for the period below.

Financial performance

The Group's policy is to recognise R&D tax incentive/offsets (as other income) at year-end. Post 30 June, management assesses its R&D activities and associated expenditure and identifies expenses that are likely to be eligible under the scheme/s. These are then reviewed and assessed by independent experts and only recognised post review.

Adjusted EBITDA loss[3] for the period was £2.9m (H1 FY24 Adjusted EBITDA loss was £3.2m). The c. 9% decrease in the Adjusted EBITDA loss was driven by:

Non-recurring items relate to the expensed transaction costs incurred in relation to the December 2024 capital raise, deferred consideration accrual for the OXLiD acquisition and the non-cash losses incurred from the disposal of fixed assets.

Our pro-active review of our IP portfolio in FY24 has also resulted in total IP costs (capitalised and expensed) to reduce from £0.6m in H1 FY24 to £0.3m H1 FY25. All these measures enable us to reduce our capital requirements while maintaining our focus on innovation and accelerating our path to commercialisation.

Statement of financial position and cash flows

At 31 December 2024, Gelion's current assets amounted to £11.5m (June 2024: £13.6m), with the decrease reflecting the receipt of the R&D tax incentive. Cash and cash equivalents of £3.5m (June 2024: £3.8m) remained largely consistent following the successful capital raise in December 2024.

Our non-current assets and total liabilities remained largely consistent across both periods and the Company continues to be debt-free.

Outlook

As we advance into the second half of FY25, Gelion continues to build upon the robust foundation established in the first half. Our strategic initiatives and technological advancements position us well for continued growth and innovation.

Financial discipline remains a cornerstone of our strategy. We continue to monitor our cost base and have implemented additional measures (post period-end) expected to deliver annual savings of approximately £0.5m, building on the £1.1m savings achieved in FY24. While additional capital investment will be required in the short term, our prudent cost management approach ensures efficient capital deployment, strengthening our ability to invest in critical R&D and commercialisation efforts.

The momentum behind our near-term opportunities continues to grow as we advance our development programs by strengthening our leadership in Li-S technology. At the same time, we are focused on securing commercial deals for the Integration Solutions team while strategically incubating non-core assets to reduce capital requirement. Our commitment to technological innovation, disciplined financial management, and sustainable growth positions us to capitalise on these opportunities. We remain dedicated to delivering cutting-edge energy storage solutions that meet the evolving needs of our global customers.

Amit Gupta

CFO

19 March 2025

Consolidated Statement of Comprehensive Income

The above results relate entirely to continuing activities.

The results for the six months ended 31 December 2024 include the results of OXLiD Ltd for the full period i.e. six months whereas 31 December 2023 include the results of OXLiD Ltd for one month i.e. from the date of acquisition i.e. 30 November 2023.

Consolidated Balance Sheet

Consolidated Statement of Cash Flows

Consolidated Statement of Changes in Equity