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* Invests in battery materials
* Net debt increases on currency factors, working capital
* Analysts say results solid (Adds analyst comment, detail)
LONDON, Nov 17 (Reuters) - Johnson Matthey, a worldleader in making catalysts for car emission-control devices,said it had raised its interim dividend by 5 percent to 20.5pence and first-half sales were also up 5 percent from a yearago.
"Trading for the group during the period was in line withour expectations in our continuing businesses on a constantcurrency basis," CEO Robert MacLeod said in a statement onThursday.
He said strong demand for emissions controls in Europe andAsia had offset weakness in North America.
Longer term, an increase in electric vehicle sales isexpected to weaken demand and Johnson Matthey has been expandingits portfolio into battery materials, such as lithium.
The company said it had invested 30 million pounds ($37million) to increase lithium iron phosphate capacity by 50percent.
Net debt increased to 896.8 million pounds by Sept. 30, up221.9 million pounds from the end of March because of anincrease in working capital and exchange rate factors.
Analyst Marc Elliott of Investec said the net debt increasewas in line with preparing inventory for a strong second halfand the results were solid. Investec has a "Buy" rating on thestock.
Its share price edged 1.1 percent higher in early trade.
($1 = 0.8039 pounds) (Reporting by Barbara Lewis and Sanjeeban Sarkar; Editing bySusan Fenton/Keith Weir)
