U.K.-based specialty chemicals and sustainable technologies company Johnson Matthey (JM) is investing £80 million ($95 million) in the construction of a gigafactory at its existing site in Royston, England, to scale up the production of hydrogen fuel cell components amid growing demand for hydrogen vehicles.
Backed by the UK Government’s Automotive Transformation Fund, the new gigafactory is expected to commission in the first half of 2024.
Initially, the gigafactory will have the capacity to produce 3 GW of proton exchange membrane (PEM) fuel cell components annually. Production could be ramped up further by using the decommissioned Clean Air production facility that could triple the potential production capacity for both fuel cell and green hydrogen components.
“Decarbonizing freight transportation is critical to help societies and industries meet their ambitious net zero emission targets – fuel cells will be a crucial part of the energy transition. For more than two decades, JM has been at the forefront of fuel cell innovation,” Liam Condon, Chief Executive of Johnson Matthey said, “The fuel cell market has now reached a pivotal moment with the increasing urgency to decarbonize transportation and today marks the next step of the journey to a low-carbon future in the UK. We’re delighted to be playing a key role in driving it forward.”
Business Secretary Kwasi Kwarteng added “This investment, backed by Government, is a major vote of confidence from Johnson Matthey in the UK. Their new facility will not only add to our growing electric vehicle supply chain, but it will also help secure hundreds of highly skilled jobs.”
Ian Constance, Chief Executive of the Advanced Propulsion Centre that manages ATF, said, “This is incredibly significant and puts the UK in an enviable position in the global fuel cell supply chain. Our insight forecasts that the UK could dominate European fuel cell production and be a center of excellence globally and today’s announcement is a huge step towards realising that ambition.”
The APC forecasts that the UK will need 14 GW of fuel cell stack production and 400,000 high pressure carbon fiber tanks annually to meet local vehicle production demands by 2035. The market predicts as many as three million fuel cell electric vehicles will be plying on the road globally by 2030.
“We already have 15% of the fuel cell value chain radiating from UK businesses but this could be as much as 65% just by expanding on current strengths in electrochemistry and coatings or using our automotive capability to volume manufacture components. Johnson Matthey, a world-leader in hydrogen technology, have seen this opportunity and I’m delighted they have chosen the UK to grow this capability,” Mr. Constance added.
Earlier this year, JM announced that it aims to become the “market leader in performance components for fuel cells and electrolyzers,” unveiling a new strategy targeting more than £200 million in sales at the Hydrogen Technologies division by end of 2024/25.
