Johnson Matthey stock dives on news of battery materials op sale

British chemicals and precious metals company Johnson Matthey Plc (LON:JMAT) saw its stock close 19% lower on Thursday after it said that it will look at exiting its battery materials operations in light of competition from other producers as well as alternative technologies.

Shares in Johnson Matthey closed at 2,236 pence, resulting in a market capitalisation of GBP 4.33 billion (USD 5.8bn/EUR 5.06bn).

The company has been developing a range of nickel-rich cathode materials (eLNO) for battery electric vehicles (EVs) and has been targeting the start of mass production in 2022.

"While the testing of our eLNO battery materials with customers is going well, the marketplace is rapidly evolving with increasing commoditisation and lower returns. We have concluded that we will not achieve the returns necessary to justify further investment," CEO Robert MacLeod said.

(GBP 1 = USD 1.340/EUR 1.169)

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