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REG - Johnson Matthey PLC - Johnson Matthey sale of Battery Materials

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RNS Number : 8432M  Johnson Matthey PLC  26 May 2022

Johnson Matthey announces sale of Battery Materials
26 May 2022

 

 

·      Johnson Matthey announces the sale of part of its Battery
Materials business to EV Metals Group, a global battery chemicals and
technology business, for £50 million cash

·      Johnson Matthey will also receive a minority equity stake in EV
Metals Group

·      Completion expected Summer 2022

·      EV Metals Group committed to investing in the business to
commercialise CAM technology and preserve skilled jobs in UK

Johnson Matthey Plc (JM), a global leader in sustainable technologies, today
announces that it has entered into an agreement for the sale of part of its
Battery Materials business to EV Metals Group, a global battery chemicals and
technology business.

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(®), a clean technology innovator in
battery materials, as announced yesterday - see more here
(https://matthey.com/nano-one-to-acquire-johnson-matthey-battery-materials-canada)
 

The sale also includes Johnson Matthey's eLNO(®) technology, underpinned by
the GEMX(®) and CAM-7(®) cathode platforms that the company licensed from
CAMX. EV Metals Group will continue to develop eLNO, building on the
successful customer testing programme that Johnson Matthey had undertaken.

The Battery Materials business will be sold for a total consideration of £50
million in cash and Johnson Matthey will receive a minority equity stake in EV
Metals.

 

In our interim results we fully impaired the carrying value of our battery
materials assets as at 30th September 2021, resulting in a charge of £314
million, and announced on 12th January 2022 that we anticipated additional
cash costs up to £150 million.  After taking into account the proceeds of
this sale these net additional cash costs are now expected to be no more than
£50 million. The transaction is expected to complete over Summer 2022.

 

Liam Condon, Chief Executive of Johnson Matthey, says: "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."

Michael Naylor, Managing Director and Chief Executive Officer of EV Metals
Group, says: "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."

 

"EV Metals is committed to protecting all high-value, specialist jobs within
JM's battery materials business and to driving further job creation by
building out a UK EV supply chain. We are pleased to welcome the technology
team in the UK and Germany who developed the Johnson Matthey Battery Materials
business to the EV Metals team.  We look forward to working with them to
commercialise cathode active materials technology through the development of
cathode active materials plants for electric vehicle and battery cell
manufacturers in the UK and Europe, where demand is forecast to significantly
outpace supply.  We are also pleased to welcome Johnson Matthey as a
shareholder of EV Metals Group."

 

 

ENDS

Johnson Matthey is a global leader in sustainable technologies that enable a
cleaner and healthier world. With over 200 years of sustained commitment to
innovation and technological breakthroughs, we improve the performance,
function and safety of our customers' products. Our science has a global
impact in areas such as low emission transport, energy, chemical processing
and making the most efficient use of the planet's natural resources. Today
about 15,000 Johnson Matthey professionals collaborate with our network of
customers and partners to make a real difference to the world around us. For
more information, visit www.matthey.com (http://www.matthey.com)

Inspiring science, enhancing life

 

 

For further information

 

Johnson Matthey:

Email: jmpr@matthey.com

Telephone: +44 207 269 8001

 

About EV Metals Group

EV Metals Group plc (EVM) is building a global battery chemicals and
technology business for a clean energy future.  EVM is focused on production
of high purity chemicals and cathode active materials required in rechargeable
batteries for electric vehicles and renewable energy storage.  The business
model and strategy of EVM is based on integration of upstream, midstream and
downstream supply chains and global processing facilities to produce high
purity chemicals and cathode active materials containing lithium, nickel
cobalt and manganese for electric vehicle and battery cell manufacturers in
UK, Europe and USA.  For further information on EVM, please visit
www.evmetalsgroup.com (http://www.evmetalsgroup.com/) .

 

About CAMX

CAMX Power, a major lithium-ion battery material and design company in the
U.S., matures promising technologies in targeted domains to be de-risked,
IP-protected and scaled-up; then licenses them, with deep technology transfer,
to large manufacturing partners. Its leading offer, developed across several
decades, is the globally patented GEMX® cathode platform which improves all
Nickel based cathodes thus significantly enhancing emobility™ and
eportability™ energy storage products by cell and material makers. Samsung
SDI and LG Energy Solution are among the other GEMX licensees.

For more information:  www.camxpower.com (http://www.camxpower.com/)

 

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