Scaling Challenges Persist as Strategic Elements Pushes Early-Stage Tech Forward

Energy Ink™ Moves Closer to Commercial Viability

Strategic Elements Ltd (ASX: SOR) has delivered a comprehensive update for the March quarter of 2025, highlighting significant technical advancements in its Australian Advanced Materials (AAM) venture. The company’s flagship Energy Ink™ technology, a moisture-powered electronic ink that generates electricity from ambient humidity, has progressed from laboratory prototypes to commercial-scale fabrication trials. Notably, the cost of prototype materials has been driven down to under 20 cents per square centimetre, a critical milestone for future commercialisation.

During the quarter, AAM commenced screen printing trials using automated equipment in a commercial facility, marking a strategic shift from manual lab-scale methods to scalable manufacturing processes. This transition is essential to meet the physical and chemical demands of industrial-scale production and to prepare for upcoming international collaborations with printed electronics specialists.

High-Power Prototype Breakthrough

Alongside the disposable low-power version, AAM advanced a higher-power Energy Ink™ prototype that achieved a roughly 40% increase in energy density compared to previous multilayer designs. The watt-range energy output demonstrated in a 64-cell array represents a significant leap from milliwatt-scale prototypes, extending energy harvesting duration from hours to multiple days. However, this high-power iteration remains unsuitable for scaling due to cost and fabrication challenges, underscoring the ongoing technical hurdles in transitioning from prototype to commercial product.

Stealth Technologies Enhances Underground Mining Solutions

Stealth Technologies, another wholly owned venture of Strategic Elements, continued to refine its AxV Platform, an integrated hardware and software system designed for underground mining environments. The quarter saw upgrades to computing hardware, thermal management, and software capabilities based on data collected during field trials under a Memorandum of Understanding with an Australian mining company. These enhancements aim to improve real-time interaction and operational efficiency underground.

Looking ahead, Stealth is developing a new application targeting overbreak and underbreak issues in gold mining, with trials planned in Western Australia for Q3 2025. This initiative addresses a critical inefficiency in underground mining that can materially affect project economics through cost overruns and schedule delays.

Financial Position and Strategic Outlook

Strategic Elements closed the quarter with a strong cash balance of $4.87 million and no debt, while net expenditure across the group was $618,000. The company continues to provide patient equity capital to its ventures, supporting early-stage R&D and IP development. Strategic Elements is actively seeking strategic partners and major investors to facilitate scale-up and commercialisation as its technologies mature.

The company’s ventures benefit from collaborations with leading universities and research institutions, leveraging grant funding and advanced infrastructure to accelerate development while optimising capital deployment. Pilot programs and trial projects remain a key focus to validate technology performance and build customer confidence ahead of full-scale market entry.

Navigating Early-Stage Risks

While the progress reported is encouraging, Strategic Elements acknowledges the inherent risks associated with early-stage technology development. Challenges such as durability, shelf life, scalability, and fabrication compatibility remain to be resolved. The company’s future success hinges on overcoming these technical hurdles and securing commercial partnerships that can support growth beyond the prototype phase.