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

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
Rating
City of London Ord366.50 GBX0.55
Henderson Opportunities Ord1,047.50 GBX-0.24
Honda Motor Co Ltd3,130.00 JPY1.46
Johnson Matthey PLC2,332.00 GBX0.73
Jupiter Green Ord247.00 GBX0.00
Umicore SA37.16 EUR0.00
Volkswagen AG160.60 EUR0.00
Witan Ord216.00 GBX0.93

About Author

James Gard  is content editor for Morningstar.co.uk

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