Johnson Matthey PLC Strategic developments in eLNO commercialisation (7801V)

TIDMJMAT

RNS Number : 7801V

Johnson Matthey PLC

19 April 2021

Johnson Matthey announces strategic partnership for sustainable battery materials production and secures critical raw materials supply

 
--   JM takes a further major step to create a leading, sustainable electric 
      vehicle ecosystem 
--   Setting a new standard in sustainability with second plant to be 
      powered by renewable energy, using responsibly sourced nickel, cobalt 
      and lithium raw materials, and employing a n innovative effluent 
      treatment solution 
--   Strategic partnership with Finnish Minerals Group to locate second 
      commercial plant for eLNO cathode materials, with nameplate capacity 
      of 30kT, in Finland 
     --  Finnish Minerals Group to invest to develop integrated supply 
          of critical raw materials and effluent treatment solution for 
          JM plant 
--   Long-term sustainable supply of critical raw materials for Europe 
     --  Nornickel for supply of nickel and cobalt, and SQM for supply 
          of lithium hydroxide 
 
Johnson Matthey (JM), a global leader in sustainable technologies, today 
 announces significant strategic developments in the commercialisation 
 of eLNO - its portfolio of leading nickel rich advanced cathode materials 
 - which put JM at the forefront of providing a sustainable and secure 
 supply of cathode materials for customers, in line with our vision for 
 a cleaner, healthier world. 
 
1.   Partnership with Finnish Minerals Group to support development of 
      our previously announced second commercial plant, which will be in 
      Finland, powered solely by renewable energy and incorporating an 
      innovative effluent treatment solution 
 
2.   Long term sustainable supply of critical raw materials for battery 
      materials production secured, creating an efficient battery electric 
      vehicle supply chain - we have signed a term sheet for the supply 
      of nickel and cobalt from Nornickel, and an agreement for the supply 
      of lithium hydroxide from SQM 
 
These important developments further strengthen our position in the 
 value chain, setting a new standard of sustainability in the production 
 of high performance cathode materials that enable greater adoption of 
 long range, pure battery electric vehicles. Working together with these 
 partners and building on our 45 years' experience in serving the automotive 
 industry, we can deliver for our customers as they expand into the fast-growing 
 battery electric vehicle market and ultimately give consumers confidence 
 in both the performance and sustainability of their car. 
 
Finland selected as location for second plant and partnership with Finnish 
 Minerals Group 
 
In scaling up our battery materials business, we have begun the front-end 
 engineering design for our second commercial plant which we announce 
 today will be located in Vaasa, on the west coast of Finland - a region 
 that aims to create an ecosystem of sustainable technologies. Finland 
 has a favourable battery materials ecosystem, offering reliable access 
 to renewable energy, sustainable raw materials and proximity to major 
 European automotive OEM and cell manufacturers. 
 
As we invest to support our commercialisation, we have entered into 
 a partnership with Finnish Minerals Group as it looks to further develop 
 the Finnish batteries ecosystem. Finnish Mineral Group manages the Finnish 
 state's mining industry shareholdings and aims to create an integrated 
 electric vehicle battery value chain in Finland. 
 
As part of our partnership, Finnish Minerals Group will invest in two 
 key areas. Firstly to 
 co-develop with JM an integrated solution to treat sodium sulphate, 
 a common manufacturing 
 by-product, providing a sustainable supply chain to conserve natural 
 resources and protect the local environment. Secondly, Finnish Minerals 
 Group will invest in pre-treatment technology of nickel and cobalt sulphates 
 to tailor the materials to the requirements of high nickel cathode materials. 
 The site will solely use locally generated renewable energy and we are 
 working with the City of Vaasa to develop a sustainable heat recovery 
 solution which feeds the local heating system network. These developments 
 are a major step towards sustainable cathode material production, which 
 our customers are increasingly demanding. 
 
Our Finland plant will have a nameplate capacity of 30kT and, subject 
 to board approval following completion of the design, we expect to start 
 construction later this year supporting our progress towards securing 
 customer contracts over the coming years. 
 
Securing supply of critical raw materials 
Our commitment to developing a sustainable ecosystem is critically important 
 to our customers. With raw materials such as nickel, cobalt and lithium 
 forecast to be in deficit over the coming years due to increasing numbers 
 of electric vehicles, through our strategic partnerships we are providing 
 long term security of our supply chain whilst delivering sustainable 
 and responsibly sourced critical raw materials. 
 
Developing an efficient, sustainable supply of nickel and cobalt with 
 Nornickel 
We announce today that we have signed a term sheet with Nornickel - 
 a world leading supplier of refined nickel products - for the supply 
 of nickel and cobalt from Nornickel's metal refineries in Harjavalta, 
 Finland and in the Kola region, Russia. This secures the supply of sustainable, 
 responsibly sourced raw materials for our cathode material production 
 in both Poland and Finland. 
 
 In addition to the supply of metals, JM and Nornickel also intend to 
 collaborate on other important topics of the battery materials value 
 chain, including on the digitalisation of the supply chain, circular 
 economy opportunities, the application of a newly developed metal dissolution 
 technology and further enhancement of the sustainability of the value 
 chain. 
 
Securing lithium supply with SQM 
We also announce today that we have signed an agreement with our fellow 
 Global Battery Alliance member, SQM - a world leading supplier of sustainable 
 lithium products - to supply lithium hydroxide from its Salar del Carmen 
 plant in Antofagasta, Chile. 
 
The developments with Nornickel and SQM, in conjunction with the investment 
 by Finnish Minerals Group, form an important part of the sustainable 
 supply chain for our cathode materials plants in both Finland and Poland. 
 
Robert MacLeod, Chief Executive, commented: 
"The partnership with Finnish Minerals Group, and the long term supply 
 of critical raw materials with Nornickel and SQM, are important milestones 
 on our journey towards developing a sustainable battery materials ecosystem 
 and further demonstrate the progress we are making on the commercialisation 
 of our business. With sustainability at the heart our strategy and an 
 increasingly important requirement for our customers and consumers, 
 we are delighted to be working with our partners to deliver sustainable 
 cathode materials to the market." 
 
Matti Hietanen, Chief Executive, Finnish Minerals Group, commented: 
"We are very happy Johnson Matthey has decided to select Finland as 
 the location of their second eLNO plant. Finnish Minerals Group and 
 Johnson Matthey share a strong commitment to sustainable solutions, 
 so we are excited to have signed a strategic partnership to develop 
 novel solutions for sodium sulphate and raw material treatment. This 
 is a strong testament of Finland's leading position in developing a 
 sustainable battery materials ecosystem in Europe." 
 
Anton Berlin, VP Sales and Commerce, Nornickel, commented: 
"We welcome JM's decision to locate their plant in Finland which will 
 further develop the Finnish battery ecosystem, and we are very pleased 
 to establish a new long term relationship in the supply of nickel and 
 cobalt. The product portfolio of our Finnish refinery in Harjavalta 
 is a perfect match for the battery segment's needs and this supply is 
 another clear demonstration of our commitment to support the development 
 of a sustainable European battery supply chain." 
 
Ricardo Ramos, Chief Executive Officer, SQM, commented: 
       "We are excited to enter into a long-term supply agreement of Lithium 
       Hydroxide with Johnson Matthey. Our companies have a strong commitment 
        to the important transition to a zero-carbon transport. Last year we 
       announced our goal to produce carbon neutral lithium products by 2030. 
       We are the first lithium producer to join IRMA as a pending member and 
        we believe it will help ensure the most comprehensive implementation 
         of strict standards for sustainable lithium production in the Salar 
        de Atacama in Chile. We are working on a major lithium expansion plan 
       while at the same time reducing our environmental footprint by cutting 
          our brine extraction and freshwater consumption in half by 2030." 
 
                                        Ends 
 
 
Enquiries: 
Investor Relations    Director of Investor Relations        020 7269 8241 
 Martin Dunwoodie      Senior Investor Relations Manager     020 7269 8235 
 Louise Curran         Investor Relations Manager            020 7269 8242 
 Jane Crosby 
 
 Media                                                      020 7269 8407 
  Sally Jones         Director of Corporate Relations        020 7353 4200 
  Simon Pilkington     Tulchan Communications 
 
 
Notes: 
eLNO is a trademark of Johnson Matthey Public Limited Company. 
 
 
 
Johnson Matthey Plc is listed on the London Stock Exchange (JMAT) 
Registered in England & Wales number: 00033774 
Legal Entity Identifier number: 2138001AVBSD1HSC6Z10 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

AGRGPUMPCUPGGWQ

(END) Dow Jones Newswires

April 19, 2021 02:00 ET (06:00 GMT)