‘This decision will allow us to accelerate our investment and focus on more attractive growth areas…’
The Board of Johnson Matthey has decided to pursue the sale of all, or parts of its Battery Materials business, with the ultimate intention to exit. The Battery Materials business comprises 430 permanent employees, the majority of whom are in the UK.
In a statement the company said; ‘Following a detailed review, and ahead of reaching a number of critical investment milestones, we have concluded that the potential returns from our Battery Materials business will not be adequate to justify further investment.’
The company added; ‘While demand for battery materials is accelerating, so is competition from alternative technologies and other manufactures. Consequently this is rapidly turning into a high volume, commoditised market. In recent month, as JM has been exploring strategic partnerships, it has also become clear that our capital intensity is too high compared with other more established large scale, low cost producers.’
Johnson Matthey Chief Executive Robert MacLeod said: ‘This decision will allow us to accelerate our investment and focus on more attractive growth areas, especially where we have leadership positions such as in hydrogen technologies, circularity and the decarbonisation of the chemicals value chain.’
During June of this year, the company announced a Joint Development Agreement with Nano One Materials Corp, to co-develop next generation products and processes for Johnson Matthey’s eLNO nickel-rich advanced cathode materials.
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