PR89048

LONDON, April 18, 2021, /PRNewswire=KYODO JBN/--

- 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 an 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."

SOURCE: Johnson Matthey