Johnson Matthey has completed its acquisition of A123 Systems’ cathode materials manufacturing facility in Changzhou, China. The plant produces lithium iron phosphate (LFP), the cathode material that A123 has been using. The companies have signed a long-term supply agreement by which Johnson Matthey will supply all of A123’s LFP requirements.
Johnson Matthey will produce A123’s Nanophosphate formulation of LFP exclusively for A123, but will maintain its position as a cell-independent system designer, selecting the most appropriate chemistry for each application. A123 is maintaining its battery R&D capability, and is developing further improvements to its LFP formulation and other battery materials.
RELATED: Could Wanxiang relaunch the Fisker as early as next year?
“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.
“This acquisition marks a further step in the development of Johnson Matthey’s battery technologies business,” said Johnson Matthey CEO Robert MacLeod. “It will strongly complement our battery systems expertise and battery materials research programs to provide a stronger platform for the development of next-generation higher performance products.”
Source: Johnson Matthey via Green Car Congress