Johnson Matthey PLC Strategic developments in eLNO commercialisation (7801V)
19 April 2021 - 4:00PM
UK Regulatory
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
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