Johnson Matthey to build UK battery plant

UK chemicals manufacturer Johnson Matthey will build a demonstration plant in Clitheroe, Lancashire, to produce its low cobalt electric vehicle battery material eLNO.

Johnson Matthey's eLNO is a lithium nickel oxide cathode material for use in rechargeable batteries. The new plant, built on the site of a nickel production facility, will have a production capacity of 1,000 t/yr.

The company has announced plans to build a full-scale production facility in continental Europe, with output expected to start in 2021-22.

The material uses minimal amounts of cobalt, a crucial component in rechargeable batteries. Most of the world's cobalt supply comes from the Democratic Republic of Congo and battery makers have taken steps to protect against the risk of supply disruption.

In September 2017, Johnson Matthey announced a £200mn ($270mn) investment in its battery materials business to capitalise on increased global adoption of electric vehicles. The company forecast that the market will be worth around $30bn in sales when battery electric vehicle penetration reaches 10pc.