UK Johnson Matthey to dispose of part of battery materials ops

British chemicals and precious metals company Johnson Matthey Plc (LON:JMAT) on Thursday said that it has agreed to sell a part of its battery materials business for GBP 50 million (USD 62.5m/EUR 58.6m) to Australian EV Metals Group.

The assets included in the deal are at the Battery Technology Centre in Oxford & Battery Technology Centre, pilot plant in Billingham, a research centre in Moosburg, Germany and the partly constructed site in Konin, Poland. The transaction also includes the company's eLNO technology.

As part of the deal, Johnson Matthey will take a minority equity stake in EV Metals.

The company's rationale for the sale includes insufficient returns, increased commoditisation of battery materials and very high capital requirements, according to the statement.

The sale is due to close during the summer.

(GBP 1 = USD 1.249/EUR 1.172)

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