Technology firm Johnson Matthey has pledged to invest £1bn ($1.3bn) into clean hydrogen research, development and deployment technologies by 2030 while ending investment in its battery materials division.

Although demand for battery materials is accelerating, the firm says competition from alternative technologies is making the market commercially unattractive.

The adoption of mid-nickel and lithium iron phosphate technologies by other manufacturers is driving down the price of batteries, reducing returns. Johnson Matthey also believes its capital intensity is too high compared with other low-cost, high-scale manufacturers.

“We already have a leadership position in the hydrogen technology space” Macleod, Johnson Matthey

“This decision will allow us to accelerate our investment and focus on more attractive growth areas, especially where we have leadership positions such as in hydrogen technologies, circularity and the decarbonisation of the chemicals value chain,” says Johnson Matthey CEO Robert MacLeod.

The announcement comes as the firm is facing significant investment decisions on material supply agreements and factories. Freeing up resources that would otherwise have been invested in battery materials will enable the firm to invest more in these other areas.

Hydrogen expertise

The hydrogen spend will consist of capital and R&D investments in blue, green and hydrogen fuel cell technologies.

“We already have a leadership position in the hydrogen technology space,” Macleod added on an analyst call announcing the move.

In terms of blue hydrogen, the firm’s technology package is part of the UK’s Acorn and Hynet low-carbon cluster propositions, and it is working with other projects in the UK, Europe, South Korea, the US and Canada. It also provides catalysts that are used in the various reactors for converting natural gas to hydrogen.

The firm’s green hydrogen business unit is relatively new, having launched in 2020. It is focused on the development and large-scale manufacture of catalyst coated membranes used in proton exchange membrane and anion exchange membrane electrolysers.

Johnson Matthey also manufactures membrane electrode assemblies, which are used in hydrogen fuel cells, with facilities in the UK and China.

Liam Condon will take over from MacLeod as CEO of the firm from 1 March next year.

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Author: Tom Young