OXLiD funding for Li-S project with QinetiQ

Gelion plc (AIM: GELN), the global energy storage innovator, is pleased to announce that its UK subsidiary, OXLiD Ltd has been awarded £533,000 grant funding from the Government's DRIVE35 programme, facilitated by the Advanced Propulsion Centre UK (APC). This funding will support scale-up and independent validation of Gelion's proprietary lithium-sulfur (Li-S) technology in high-energy multi-layer pouch cells, a critical step towards commercial adoption in Defence, Aerospace and Automotive markets.

The project will be delivered in collaboration with QinetiQ plc (LON: QQ), the UK headquartered defence, security and aerospace company.

Key Highlights

• Grant funding secured: c. £533,000 grant under the DRIVE35 Demonstrate programme, delivered through the APC, supporting a 12‑month c. £1.1 million project with Gelion's contribution primarily in kind through the provision of time and expertise.
• Scale‑up into >10Ah pouch cells: Funding will enable the design, build and demonstration of Li‑S multi-layer pouch cells incorporating Gelion's proprietary sulfur cathode active material (CAM), an important step towards market readiness.
• Third party validation with QinetiQ: Gelion will be working with QinetiQ to build and independently test the demonstrators incorporating Gelion's proprietary CAM technology, validating performance metrics for Defence, Aerospace and specialist markets.
• Pathway to commercial adoption: Demonstrators will provide industry‑standard validation in commercially relevant pouch cell format, a necessary step to initiate full market adoption.

DRIVE35 Demonstrate Programme

The project will run for 12 months and has a total budget of c.£1.1 million, co‑funded 50% by the government grant with Gelion's contribution primarily in kind through the provision of time and expertise as it works with APC and QinetiQ to develop the multi-layer pouch cells. The Company expects this project will enable it to identify commercial off‑take opportunities in Defence, Aerospace and Automotive markets.

Scale-up of Gelion's proprietary sulfur CAM technology

Earlier this month, Gelion announced that it successfully completed the full transfer of Max Planck Institute of Colloids and Interfaces' (MPI) proprietary sulfur CAM technology into the Company's development and production ecosystem. With this technical milestone achieved, Gelion is now able to collaborate with QinetiQ to build high energy >10Ah pouch cells to demonstrate its core sulfur CAM technology for a range of targeted markets, including Defence, Aerospace and the Automotive sector.

In parallel, Gelion continues to progress its Materials Testing Agreement (MTA) with a Tier‑1 global battery manufacturer, further underlining the acceleration of technology validation and the pathway towards commercial adoption of its sulfur CAM solution.

Development programme with QinetiQ

QinetiQ brings extensive expertise in cell manufacturing, defence certification and commercialisation within Defence, Aerospace and Security markets. Working alongside Gelion, QinetiQ will assemble and validate the pouch cell demonstrators, providing third‑party performance data to de‑risk adoption in specialist applications whilst also supporting progression of the Gelion CAM towards commercial energy storage and automotive markets.

The pouch cell demonstrators and associated energy, cycling and power performance will be showcased at the Cenex Expo 2026 providing a platform for industry engagement and the exploration of potential collaboration and licensing opportunities in the targeted application sectors.

John Wood, Gelion CEO commented: "We are grateful for this government support via the Advanced Propulsion Centre UK (APC) to demonstrate how use of our breakthrough Sulfur Cathode Material with Lithium Metal anodes can deliver cells with not only ultra-high energy density but that are also a full set of the other additional performance attributes needed for application to strategic applications like defence and aerospace. We are especially pleased to be implementing this alongside QinetiQ utilizing their sector specific experience and UK based cell fabrication capabilities."

Quote from QinetiQ: "We are pleased to have this opportunity to work with Gelion and their exciting, advanced lithium-sulfur cell chemistry, which offers considerable potential for future defence applications as UK MOD plans electrification across all three services to enhance capability and reduce their carbon footprint. Our pouch cell assembly capability is ideal for this APC Demonstrate programme, where small numbers of custom cells are required for development and testing purposes or for safety certification to mature the technology."

Ian Constance, CEO at APC: "The DRIVE35 programme underlines the commitment from Government to secure advanced manufacturing in the UK. I am pleased that the APC, Zenzic, and its delivery partners are here to facilitate a new wave of funding in the automotive industry, supporting innovation, driving scale-up, and enabling transformation.

These grants boost the UK's leadership in automotive manufacturing. They enable the rapid development of demonstrators featuring cutting-edge technology, accelerate ambitious SMEs, and support vital collaborative R&D innovation. This will encourage further investment in the UK's growing zero-emission supply chain, safeguarding skilled jobs, building on the country's reputation as a world-leader for technology."

A short video Q&A has been uploaded to the Gelion website: https://gelion.com/news/gelion-qinetiq-collaboration/

Sulfur Batteries

Glossary