Livonia Battery Manufacturer Sold to Johnson Matthey


LIVONIA — A123 Systems LLC, a developer and manufacturer of advanced nanophosphate lithium-ion batteries and systems, today announced that it recently completed the sale of its facilities for the production of battery materials to Johnson Matthey, a global manufacturer of specialty chemicals.

The facilities in Changzhou, China produce lithium iron phosphate (LFP), the cathode material that A123 uses for manufacturing its product . The companies have entered into a long term supply agreement where Johnson Matthey will supply all of A123’s LFP requirements.

A123 is maintaining its considerable research and development capability related to battery materials and is presently developing further improvements to its LFP formulation as well as other modern battery materials. In this transaction, A123 has also retained ownership of its intellectual property in battery materials and Johnson Matthey will produce A123’s nanophosphate formulation of LFP exclusively for A123.

“This deal is good for both companies as A123 seeks to rationalize its supply chain while Johnson Matthey can leverage its substantial experience in the manufacturing of specialized materials.” said Jason Forcier, CEO of A123 Systems. “We look forward to a long and prosperous relationship with the Johnson Matthey team.”

Forcier says the agreement has strengthened Johnson Matthey’s position in the battery technologies sector through the production and commercialization of advanced battery materials. It will also support Johnson Matthey’s product development programs, working with A123 and other materials customers to provide the next generations of materials.

Forcier says Johnson Matthey’s Battery Systems business will maintain its position as a cell-independent system designer, selecting the most appropriate cell chemistry to meet the needs of each application. The LFP manufacturing assets of A123 together with Johnson Matthey’s materials expertise and experience in battery system development provide a powerful combination of applications engineering, materials science and electrochemistry.