Johnson Matthey Rides the Electric Car Boom

FTSE 100 chemicals firm has capitalised on the global move towards electric vehicles with news of a £200 million investment

James Gard 22 September, 2017 | 3:34PM
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Electric car

Shares in FTSE 100 chemicals firm Johnson Matthey (JMAT) have surged this week as it updated the market about its investments in electric vehicle battery technology. In a Thursday capital markets presentation, the company said it would invest £200 million from next year into lithium electric car batteries, a market that it expects to be worth $30 billion if electric car ownership hits 10% of all cars sold. Robert Macleod, chief executive, said that the investment would help “create value and a cleaner and healthier world”

Johnson Matthey built up its business making catalytic convertors for petrol and diesel vehicles, so this week’s announcement has reassured investors that the company is gearing up for the next phase in car technology. A range of global car companies have made pledges to make electric cars by a certain date: four-star rated Volkswagen (VOW) will build an electric version of all its models by 2030, and Volvo, Honda (7267) and Jaguar Land Rover have made similar announcements. Jaguar Land Rover will offer an electric choice for its cars much earlier, by 2020. Car-makers will still manufacture non-electric models from these dates, rather they will offer customers the option of buying an electric alternative for each model.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Artemis UK Special Situations R Acc7.46 GBP0.82Rating
BMO Responsible UK Equity 2 Acc445.10 GBP0.11Rating
City of London Ord386.51 GBP-0.39Rating
Henderson Opportunities Ord1,487.65 GBP1.03Rating
Honda Motor Co Ltd3,448.00 JPY0.00Rating
Johnson Matthey PLC2,678.00 GBP0.00Rating
Jupiter Green Ord264.00 GBP0.00Rating
Umicore SA50.14 EUR0.00
Volkswagen AG268.60 EUR0.00Rating
Witan Ord248.50 GBP0.41Rating

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James Gard  is content editor for


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