Johnson Matthey to sell battery materials business to EV Metals

Batteries. CC0 Public Domain licensed on Pixabay

May 26 (Renewables Now) - Johnson Matthey Plc (LON:JMAT), or JM, has agreed to sell a portion of its Battery Materials business to chemicals and cathode active materials producer EV Metals Group Plc (EVM) for GBP 50 million (USD 63m/EUR 59m) in cash plus a minority equity stake in the buyer.

The British speciality chemicals and sustainable technologies company is selling to EVM the assets at the Battery Technology Centre in Oxford & Battery Technology Centre and pilot plant in Billingham, a research centre in Moosburg, Germany and the partly constructed site in Konin, Poland. The sale to EVM also includes JM’s eLNO technology.

JM did not disclose the size of the EVM minority interest it will receive in return. The divestment is expected to close this summer.

Separately, Nano One Materials Corp (TSE:NANO) will acquire all of the outstanding shares of Johnson Matthey (JM) Battery Materials Ltd, also known as JMBM Canada, for about CAD 10.25 million (USD 8m/EUR 7.5m). This transaction includes JM’s lithium iron phosphate (LFP) cathode material production facility in Candiac, Quebec.

"Johnson Matthey made the decision to exit Battery Materials due to insufficient returns, increased commoditisation of battery materials combined with the need for very high capital investments to remain competitive,” stated Liam Condon, CEO of Johnson Matthey, and added: “This important divestment means Johnson Matthey can now focus on our core portfolio and today I've outlined our new strategy, which explains how Johnson Matthey will create more value and help accelerate societal progress towards net zero."

Michael Naylor, managing director and CEO of EVM, in turn commented that the group will work with the newly-acquired technology teams in the UK and Germany to commercialise cathode active materials (CAM) technology through the development of CAM plants for electric vehicle (EV) and battery cell manufacturers in the UK and Europe.

(GBP 1.0 = USD 1.259/EUR 1.178)

(CAD 1.0 = USD 0.780/EUR 0.730)

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