| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Gelion plc (LSE: GELN) is an innovative battery technology company specializing in the research, development, and commercialization of zinc-bromide batteries under its Endure brand. Headquartered in Eveleigh, Australia, and listed on the London Stock Exchange, Gelion focuses on sustainable energy storage solutions for diverse applications, including renewable energy farms, industrial equipment, electric vehicles, and grid stabilization. The company's zinc-bromide batteries offer advantages such as safety, longevity, and recyclability, positioning Gelion as a key player in the transition to greener energy storage. Operating in the competitive electrical equipment and parts sector, Gelion targets commercial, industrial, and utility-scale markets, aligning with global decarbonization trends. Despite being in the pre-revenue stage, its technology has potential in high-growth markets like renewable energy integration and electrified transport.
Gelion plc presents a high-risk, high-reward investment opportunity due to its pioneering zinc-bromide battery technology and alignment with global energy transition trends. The company is currently pre-revenue, with significant R&D expenses leading to negative earnings (-7.95M GBp net income in FY 2023). However, its low debt (8,000 GBp) and moderate cash reserves (3.79M GBp) provide some financial flexibility. The negative beta (-0.271) suggests low correlation with broader markets, potentially offering portfolio diversification benefits. Investors should weigh the long-term potential of its sustainable battery solutions against the inherent risks of early-stage technology commercialization, including competition from established lithium-ion and alternative battery manufacturers.
Gelion competes in the energy storage market with a differentiated zinc-bromide chemistry, which offers safety and environmental advantages over dominant lithium-ion technologies. Its Endure batteries target niche applications where flammability concerns or recycling needs make lithium-ion less suitable. However, the company faces significant challenges scaling production and achieving cost parity with incumbents. While zinc-bromide chemistry avoids lithium supply chain constraints, it must overcome lower energy density limitations. Gelion’s early-mover advantage in commercializing this technology is offset by competition from both large battery manufacturers diversifying into alternatives and startups pursuing other non-lithium chemistries (e.g., sodium-ion). Strategic partnerships will be critical to demonstrate real-world performance and secure market adoption against entrenched lithium-ion solutions benefiting from decades of infrastructure and manufacturing scale.