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Johnson Matthey agree battery material collaboration
Johnson Matthey has sold its automotive battery systems business to US power company Cummins but agreed to collaborate on developing the UK group's new high energy battery material.
As part of the deal, FTSE 100-listed JMAT said the deal would allow it to focus on developing high energy battery materials, including its class-leading enhanced lithium nickel oxide (eLNO) product, for transport applications within its overall technology portfolio.
The sold division specialises in high-voltage automotive grade battery systems for electric and hybrid vehicles. The parties agreed they would collaborate on the development of "new products with enhanced performance characteristics for commercial applications relying on the unique and deep expertise of each company".
Robert MacLeod, JMAT's chief executive, said it was an important step.
"It will enable us to grow our position in high energy battery materials, particularly for heavy duty applications, and apply our chemistry expertise to develop new products that will give our customers, and ultimately consumers, the performance they demand from electrically powered vehicles.
"In divesting our automotive battery systems business to Cummins we can focus on our strategy of expanding our eLNO platform and developing commercial battery materials for the full range of transport applications," he added.
JMAT shares shot up 4.5% to 3,458.33p on the news.