Specialty chemicals firm Clariant has agreed to sell its Energy Storage line of business to Johnson Matthey for $75 million. The division is the world’s largest producer of hydrothermal lithium iron phosphate (LFP), which is used in EVs and stationary battery applications.

The transaction includes a manufacturing facility in Candiac, Québec, and an R&D center and pilot plant in Moosburg, Germany. Johnson Matthey will gain rights to a number of patents on LFP and its use as a cathode material, as well as a portfolio of IP covering current and future battery materials.

In 2013 the Energy Storage business generated around $17 million in sales, but had an operating loss.

In September, Johnson Matthey acquired A123 Systems’ cathode manufacturing facility in China. JM plans to integrate the two battery materials acquisitions into a single entity, Johnson Matthey Battery Materials.

SEE ALSO: LG Chem means to have a 25 percent share of a growing EV battery market

“This acquisition provides us with a strong position in LFP from which to develop a broad portfolio of battery materials,” said Johnson Matthey CEO Robert MacLeod. “It further strengthens our battery technologies capability, which marks an important step in Johnson Matthey’s long-term strategy to establish new business areas.”

Source: Clarint via Green Car Congress