Johnson Matthey, a company that specialises in sustainable technologies, has decided to sell its battery materials business following a review into potential return on investment, despite accelerating market demand.
The company said its search for strategic partnerships has made it clear its "capital intensity" is too high compared with other large-scale commoditised areas.
The rapid growth in demand for battery materials has turned the sector into a "high volume, commoditised market."
Therefore, the company will "move swiftly" to determine the best outcome for stakeholders.
Robert MacLeod, chief executive officer of Johnson Matthey, said the decision would allow the company to "accelerate investment and focus on more attractive growth areas".
Additionally, the company said it is making progress in other growth areas, such as hydrogen technologies, circularity, and the decarbonisation of the chemicals value chain.
"These are attractive opportunities which will now accelerate greater focus and investment," the company stated.
"In, in a world that increasingly needs solutions to address the challenges faced by climate change, we will continue to pursue opportunities across other areas that are closely aligned to our core capabilities."
