UK-based chemicals company Johnson Matthey (JM) has signed a long-term agreement to supply battery cathode material to Dutch lithium-ion producer, Lithium Werks (LW).
Under the agreement— which will run for five years, commencing 1 April 2019— JM will supply lithium iron phosphate (LFP) material manufactured at its Changzhou, China facility.
In September 2018, JM sold its automotive battery business to US-based Cummins, allowing the company to focus on “developing commercial battery materials for the full range of transport applications”.
JM chief executive Alan Nelson said the relationship between the two companies could be developed further, “as JM continues to execute its strategy of break-out growth in battery materials”.
LW produces batteries for a number of applications, “including material handling, large motive, maritime and energy storage”. CEO Joseph Fisher said the deal would “provide additional certainty to our customers, and enable the transition to clean and sustainable renewable energy”.
Last year, LW acquired the industrial business of Michigan-based lithium battery producer A123 Systems, taking over the company’s manufacturing plants— also in Changzhou— in the process.