Johnson Matthey will invest £200 million in battery storage technology in 2018
The British multinational giant Johnson Matthey announced that it will make an initial investment of £200 million in 2018 in the wake of the anticipated rapid growth of the electric vehicle market in the years to come.
According to the company’s estimations, by the time the electric vehicle market penetration reaches around 10 percent, the potential market value of its products could be more than $30 billion.
The information was revealed in the company’s recent Capital Markets Day, during which, the company outlined its strategy for growth and value creation across all its sectors.
Dr. Alan Nelson, Sector Chief Executive, New Markets and Group CTO said that the company is working on three new market opportunities, - i.e. alternative powertrains, life science technologies, and medical device components, of which battery materials to support alternative powertrains offer the greatest opportunity.
The £200 million investment in high-energy battery materials will be enough to manufacture up to 10,000 metric tons from 2021 to 2022.
The company will focus on a wide portfolio of cathode materials which will be able to be used in a wide range of electric vehicle applications.
At the moment, Johnson Matthey operates a Clean Air department, where it offers emission control catalysts and exhaust treatment solutions, including catalysts for light and heavy duty vehicles, diesel retrofits and stationary emissions control.
With regards to Clean Air, the company estimated that it will continue to be a lucrative sector for the next 2-3 years, but growth will fall as a result of the shift away from light-duty diesel vehicles worldwide.
Rober MacLeod, Chief Executive in Johnson Matthey said: "We will enhance our leadership in the high margin, technology driven growth markets we operate in through focused investment and efficiency throughout the group”.
“We are world class chemists. We have the expertise to solve our customers' complex and increasingly challenging problems by scaling up fundamental chemistry to provide commercial solutions which drive our growth”.
"This will create value and a cleaner and healthier world. Through the strategy, we aim to be one of the best performing, most trusted and admired specialty chemical companies in the world”.
Johnson Matthey first entered the lithium-ion battery market in 2012.