Johnson Matthey Plans to Exit The Battery Materials Business

British specialty chemicals company Johnson Matthey revealed on November 11 that it plans to withdraw from its battery materials business.

Johnson Matthey stated that the potential return from the battery materials business is not enough to justify further investment. Although the global demand for battery materials is accelerating, competition from alternative technologies and other manufacturers is also accelerating. Therefore, this is rapidly transforming into a high-volume, commoditized market.

According to Johnson Matthey's analysis, compared with other more mature large-scale low-cost manufacturers, its own capital intensity is too high. The board of directors decided to sell all or part of the business, with the ultimate goal of exiting.

Johnson Matthey has been committed to the commercialization of a series of high nickel cathode materials for several years, mainly used in the automotive industry.

Johnson Matthey will focus on other growth areas such as hydrogen technology, circular economy and decarbonization of the chemical supply chain. As of October 31, the battery materials business had net assets of approximately 340 million pounds and 430 employees, mainly in the UK.