There is a lot of information embedded in this decision.
From FT Alphaville:
Johnson Matthey’s sudden change of heart doesn’t add up
Why did the company suddenly say eLNO to its cathode business?
Here’s a puzzling one.
Johnson Matthey, the £4bn UK conglomerate best known for its catalytic converter business, announced on Thursday that it is ending its long-running — and expensive — foray into developing cathodes for electric vehicle batteries. Coupled with warnings of supply chain disruptions, and news of its chief executive Robert MacLeod stepping down in 2022, the shares have taken a beating. Down 18 per cent at pixel time.
The company had been pitching the new cathode technology, known as eLNO, since as far back as 2015, as the eventual heir to its catalytic converter arm. And it had been putting its money in the same place as its mouth: investing an estimated £500m into a new factory in Poland, with another planned for Finland. It also had supply deals in place for rare metals with Russia’s Norilsk Nickel and Chile’s SQM. Everything seemed to be falling neatly into place....
....MUCH MORE
Previously:
Johnson Matthey Is Getting Deeper Into The Battery Biz (also Glencore; Oxford Uni. et al) JMAT.L
Johnson Matthey Goes North To Finland For Battery Materials Plant (JMAT:London)
Johnson Matthey is a very interesting player in the energy transition metals but I frankly wasn't thinking big enough, just the platinum and palladium for hydrogen catalysts, whereas this news is a whole new ballgame....
