Johnson Matthey sells part of its Battery Materials business
Johnson Matthey has entered into an agreement for the sale of part of its Battery Materials business to EV Metals Group.
The sale includes Johnson Matthey's 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 does not include Johnson Matthey's LFP facility in Canada, which will be acquired by Nano One.
The sale also includes Johnson Matthey's eLNO technology, which EV Metals Group will continue to develop.
The Battery Materials business will be sold for a total consideration of GBP 50 million in cash and Johnson Matthey will also receive a minority equity stake in EV Metals, according to a press release.
"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," says Liam Condon, Chief Executive of Johnson Matthey.
The transaction is expected to complete over Summer 2022. EV Metals says that it is committed to protecting all high-value, specialist jobs within JM's battery materials business and continue to drive further job creation by building out a UK EV supply chain.
"The acquisition of the Battery Materials Business is a strong strategic fit for EV Metals Group. It includes world class, leading technology for the production of cathode active materials," says Michael Naylor, Managing Director and CEO of EV Metals Group.