(Alliance News) - Johnson Matthey PLC on Monday said it has put in place three agreement to build a new factory and buy raw materials as part of its plan to commercialise the production of battery materials for electric cars.
Shares were up 1.1% to 3,222.00 pence in London.
The London-based speciality chemicals company formed a partnership with state-affiliated Finnish Minerals Group to build a factory in Vaasa, on the west cost of Finland. The site will run solely on renewable energy and has the advantage of being close to major European car and battery manufacturers, Johnson Matthey said.
The company also has secured the long-term supply of raw materials needed to make the battery products, including nickel and cobalt from Norilsk Nickel and lithium hydroxide from SQM. Nornickel will supply from its metal refineries in Harjavalta, Finland and in the Kola region, Russia, while the SQM will supply from its Salar del Carmen plant in Antofagasta, Chile.
The Finland factory will be the second commercial plant for Johnson Matthey's eLNO portfolio of battery materials, serving customers in the automotive industry as they expand into electric vehicles, the company said. Construction is set to start later this year. The first factory, in Poland, was announced in March 2019 and is due to go on stream next year, according to previous statements.
The agreements are "important milestones on our journey towards developing a sustainable battery materials ecosystem and further demonstrate the progress we are making on the commercialisation of our business," Johnson Matthey Chief Executive Robert MacLeod said.
By Ivan Edwards; ivanedwards@alliancenews.com
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Johnson Matthey (JMAT)