Johnson Matthey to sell part of battery materials business to EV Metals
Johnson Matthey has agreed to sell a part of its battery materials business to EV Metals Group, an Australian battery chemicals and technology firm, for £50 million ($63.1 million) in cash.
Additionally, the British specialty chemicals company will also secure a minority stake in EV Metals Group.
The sale covers Johnson Matthey’s assets at the Battery Technology Centre in Oxford & Battery Technology Centre and the Billingham pilot plant, a research centre in Moosburg in Germany and the partly built site in Konin in Poland. Also included in the transaction is Johnson Matthey’s eLNO technology, which is supported by the GEMX and CAM-7 cathode platforms that were licensed from CAMX.
EV Metals Group plans to continue developing the eLNO technology.
Michael Naylor — EV Metals Group Managing Director and CEO, commenting on the acquisition of the battery materials business, said: “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.
“With our unique upstream, midstream and downstream business model, EV Metals is well positioned to drive the successful commercialisation of JM’s CAM technology, taking full advantage of the Group’s ‘mine to OEM’ integrated supply chain, which addresses the long-term market challenge of both surety of raw materials and the supply of processed materials.”
The deal is likely to close during the Summer of 2022.
The sale excludes Johnson Matthey’s LFP facility in Canada, which will be acquired by Nano One, as part of a deal worth around CAD 10.25 million ($8 million).
Why Johnson Matthey is selling its battery materials business
Liam Condon — Johnson Matthey Chief Executive, commenting on the sale of the battery materials business, said: “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.
“With EV Metals Group vision and capability to be a fully integrated battery chemicals business, I am very confident that they are the right owner for the Battery Materials business going forward.
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.”