Johnson Matthey PLC

Management Reports • Mar 28, 2019

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RNS Number : 2551U

Johnson Matthey PLC

28 March 2019

Johnson Matthey achieves two major milestones in commercialisation of eLNO®

Johnson Matthey (JM), the global leader in science that makes the world cleaner and healthier, announces two major strategic developments in the commercialisation of eLNO®, its portfolio of market-leading ultra-high energy battery cathode materials:

·      Site in Poland secured for construction of commercial plant, with room for significant expansion

·      Supply of lithium-containing raw materials secured via a long term supply agreement with Nemaska Lithium Inc. for the supply of lithium hydroxide over ten years to match expanding demands of commercial production

These two important developments will enable JM to meet customers' commercial scale requirements for eLNO.  They demonstrate that JM is on track with its plans to start commercial production in 2021/22 and to be supplying platforms in production in 2022/23, both of which are in line with our strategy for break out growth in Battery Materials.      

Location in Poland secured with potential for up to 100,000 MTpa plant capacity; initial 10,000 MTpa plant construction expected to start this year  

JM announces that its first commercial scale eLNO manufacturing plant will be located in Konin, Poland, about 200 km west of Warsaw.  JM has entered into an agreement to purchase a 43 hectare plot which gives us the potential to expand our eLNO manufacturing capacity to up to 100,000 MT per annum.  This will enable JM to scale up its operations in line with anticipated customer demand for eLNO.

JM has previously announced its plans to invest in its first 10,000 MT per annum commercial plant and is pleased to have secured the Konin site which places JM's operations at the heart of Europe, close to major customers in the battery electric vehicle supply chain.   

Long term agreement with Nemaska Lithium for lithium hydroxide gives JM's customers security of supply

In addition to this significant development regarding commercial scale eLNO manufacturing, JM has agreed a ten-year agreement with Nemaska Lithium for the supply of lithium hydroxide used in the manufacture of eLNO.  This latest agreement builds on the collaboration between JM and Nemaska Lithium which began in 2016 and will support the commercialisation of eLNO.  The agreement gives JM access to lithium hydroxide for eLNO with the volumes and phasing aligned to our production plans and gives our customers the knowledge that by choosing JM, they have a secure of supply of crucial lithium-containing raw materials for their battery cathode materials.

Commenting on the developments, Robert MacLeod, Chief Executive of Johnson Matthey said:

"These two developments that we have announced today demonstrate that we are well on track with the commercialisation of eLNO.  Having applied our world class science to create eLNO technology that outperforms the market for customers, we are commercialising our technology for them through flexible, scalable manufacturing capacity in Poland and a secure supply of vital lithium-based raw materials.  We are firmly delivering in line with our strategy for break out growth in Battery Materials and JM remains well placed for success as the global market for electric vehicles develops."

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About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, we improve the performance, function and safety of our customers' products. Our science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet's natural resources. Today more than 14,000 Johnson Matthey professionals collaborate with our network of customers and partners to make a real difference to the world around us. For more information, visit www.matthey.com 

Inspiring science, enhancing life 

eLNO is a trade mark of Johnson Matthey Public Limited Company

Enquiries:
Investor Relations Martin Dunwoodie Louise Curran Jane Crosby	Director of Investor Relations Senior Investor Relations Manager Investor Relations Manager	020 7269 8241 020 7269 8235 020 7269 8242
Media Sally Jones David Allchurch	Director of Corporate Relations Tulchan Communications	020 7269 8407 020 7353 4200

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