The facilities in Changzhou, China produce 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 modern battery materials. In the 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.
“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.” said 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. The deal 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. The LFP manufacturing assets of A123 together with Johnson Matthey’s materials expertise and experience in battery system development provide a powerful combination of applications engineering, materials science and electrochemistry.
Robert MacLeod, Chief Executive of Johnson Matthey said: “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.”
Related articles and links: