Yahoo Finance Johnson Matthey to build UK battery demonstration plant
Johnson Matthey is to build a “demonstration scale” plant in the UK to perfect the manufacturing processes for its new battery material for use in electric vehicles.
The FTSE 100 company said the new facility will be opened at its site in Clitheroe, Lancashire, and will be able to produce 1,000 tonnes of the next generation enhanced lithium nickel oxide - or eLNO - material for samples.
Johnson Matthey is one of many companies in the sector racing to introduce new materials as demand for electric vehicles grow, and the business has predicted “break out growth” from its battery materials division.
Its eLNO material for batteries is thought to represent a step-change in energy density compared to other technologies.
Unlike other technologies, which rely on rare materials such as cobalt, which is rapidly rising in price, eLNO uses more common metals.
This makes it cheaper to produce and the company has previously signalled that batteries using eLNo can also be lighter and smaller.
The new facility in Clitheroe will require a multi-million pound investment and is likely to add several dozen research jobs.
Clitheroe was chosen because staff there have “extensive experience in the scale up and manufacture of nickel-containing products”, the company said, adding that opening the demonstration site would be an “important step in the commercialisation of eLNO”.
Johnson Mattheydid not reveal an exact timeframe for its construction, saying only that it wanted to have it running as soon as possible, as the company wants to build a full-scale production plant in Europe which it aims to have in full production in three years.
Robert MacLeod, chief executive, said the new facility would enable Johnson Matthey to “support customers’ development programmes and build our market presence. We already make a significant contribution to cleaner air around the world; we’re now applying our world class science to next generation battery materials.”
Johnson Matthey is best known for producing catalytic converters which fit inside vehicles’ exhaust systems and reduce emissions.
Responsible for about three quarters of group sales, this business is likely to decline in the future as vehicles increasingly become electrified, leaving Johnson Matthey - which last year celebrated its 200th anniversary - seeking new sources of revenue to replace it.
