As part of the acquisition, Cummins and Johnson Matthey also agreed to collaborate on the development of high energy battery materials for commercial heavy-duty applications.
The deal, says Cummins, will allow it to expand its electrification and energy storage capabilities, while Johnson Matthey will focus on developing high energy battery materials, including its lithium nickel oxide (eLNO) product for transport applications.
“The addition of Johnson Matthey Battery Systems’ technical expertise and customer base in markets that are more rapidly adopting electrification further positions us as a global energy storage supplier,” said Tom Linebarger, Cummins chairman and CEO.
“By combining our electrification capabilities, portfolio of diverse power solutions, and global network, Cummins is uniquely positioned to lead in electrification. What differentiates us is our ability to help customers succeed with high quality products across the spectrum of power solutions they use, whether it’s electric, diesel, natural gas or other energy solutions.”
Robert MacLeod, chief executive for Johnson Matthey, described it as “an important step”, adding: “In divesting our automotive battery systems business to Cummins, we can focus on our strategy of expanding our eLNO platform and developing commercial battery materials for the full range of transport applications.”
The battery business is one of Europe’s largest lithium-ion system suppliers, with 50 employees based in Milton Keynes.