Tech firm Nanoco unveils joint development agreement with a new Asian customer

Nanoco Group, the Runcorn-based tech business, has signed a “major” new joint development agreement (JDA) with a new second Asian chemical customer.

The Manchester University spin-out said the revenue from the JDA will help it exceed current expectations for non-license fee income in fiscal year 2025 and contribute further revenue to the 2026 financial year.

Nanoco develops materials used in the manufacture of monitors and TV screens and technologies for medical imaging and the early diagnosis of cancer.

The target of the one-year programme with the new Asian customer is to optimise lead-free nanomaterials to be incorporated into global electronics applications.

Once successful, the subsequent stage will involve scale-up to industrial production levels during 2027.

Nanoco CEO, Dmitry Shashkov, said: “This JDA with another Asian chemical company highlights the growing focus on the incorporation of quantum dots into sensors for high volume commercial applications.

“The consensus of market research is that quantum dot-enabled silicon sensors, especially ones which are lead-free, will disrupt the global consumer electronics market, and Nanoco, along with its customers, are at the forefront of this technology, and we also have significant IP protections in this area.”

He added: “Discussions are ongoing with other potential new customers around further potential projects and we look forward to updating shareholders further in due course.”

In August last year the company announced its revenues for the current financial year to July 31, 2025, would be slashed by 25% after a key European customer pulled out of a commercial partnership involving infrared sensing applications in electronic devices.

The group had announced in the previous month that it no longer expected to receive a further production order for its validated first generation sensing products from the customer.

The European customer also served notice on Nanoco’s two-year joint development agreement for second generation sensing materials that was previously announced in January 2024.

Nanoco said it had achieved all of the required development milestones and had received positive feedback on the performance of the new material.

It said it understood that the European customer’s decision had been based on its own strategic priorities and not as a result of concerns with the performance of Nanoco’s materials.

The group said it would be negotiating end of project terms with the customer.

In its interim results announcement earlier this month, Nanoco revealed that an additional £311,000 revenue will be recognised in the second half of financial year 2025 following the completion of the settlement agreement with the European electronics customer.

Nanoco is also currently working with an existing Asian customer on a joint development agreement for second generation sensing materials, with the potential for production orders in the medium term, subject to end user adoption of the technology.