Johnson Matthey raises interim dividend by 5 pct

* Invests in battery materials

* Net (LSE: 0LN0.L - news) debt increases on currency factors, working capital

* Analysts say results solid (Adds analyst comment, detail)

LONDON, Nov 17 (Reuters) - Johnson Matthey (LSE: JMAT.L - news) , a world leader in making catalysts for car emission-control devices, said it had raised its interim dividend by 5 percent to 20.5 pence and first-half sales were also up 5 percent from a year ago.

"Trading for the group during the period was in line with our expectations in our continuing businesses on a constant currency basis," CEO Robert MacLeod said in a statement on Thursday.

He said strong demand for emissions controls in Europe and Asia had offset weakness in North America.

Longer term, an increase in electric vehicle sales is expected to weaken demand and Johnson Matthey has been expanding its portfolio into battery materials, such as lithium.

The company said it had invested 30 million pounds ($37 million) to increase lithium iron phosphate capacity by 50 percent.

Net debt increased to 896.8 million pounds by Sept. 30, up 221.9 million pounds from the end of March because of an increase in working capital and exchange rate factors.

Analyst Marc Elliott of Investec (LSE: INVP.L - news) said the net debt increase was in line with preparing inventory for a strong second half and the results were solid. Investec has a "Buy" rating on the stock.

Its share price edged 1.1 percent higher in early trade.

($1 = 0.8039 pounds) (Reporting by Barbara Lewis and Sanjeeban Sarkar; Editing by Susan Fenton/Keith Weir)