A123 sells Li-ion cathode materials manufacturing assets to Johnson Matthey; JM to provide all of A123 LFP needs
Li-ion battery maker A123 Systems LLC recently completed the sale of its cathode materials manufacturing facility to Johnson Matthey. The plant, in Changzhou, China produces lithium iron phosphate (LFP), the cathode material that A123 has historically used across its product portfolio and the companies have entered into a long term supply agreement where Johnson Matthey will supply all of A123’s LFP requirements.
A123 is maintaining its research and development capability related to battery materials and is presently developing further improvements to its LFP formulation as well as other battery materials. In this transaction, A123 has also retained ownership of its intellectual property in battery materials and Johnson Matthey will produce A123’s Nanophosphate formulation of LFP exclusively for A123.
Johnson Matthey will work with A123 and with other customers in the lithium-ion cell industry to develop and commercialize a range of advanced battery materials.
This deal is good for both companies as A123 seeks to rationalize its supply chain while Johnson Matthey can leverage its substantial experience in the manufacturing of specialized materials.—Jason Forcier, CEO of A123 Systems
The deal has strengthened Johnson Matthey’s position in the battery technologies sector through the production and commercialisation of advanced battery materials. It will also support Johnson Matthey’s product development programs, working with A123 and other materials customers to provide the next generations of materials.
Johnson Matthey’s Battery Systems business will maintain its position as a cell-independent system designer, selecting the most appropriate cell chemistry to meet the needs of each application.
This acquisition marks a further step in the development of Johnson Matthey’s battery technologies business. It will strongly complement our battery systems expertise and battery materials research programmes to provide a stronger platform for the development of next generation higher performance products that can meet the challenging energy storage requirements of batteries for the automotive sector.—Robert MacLeod, Chief Executive of Johnson Matthey
A123 Systems LLC is a wholly owned subsidiary of Wanxiang Group.