Clariant has agreed to divest its Business Line Energy Storage to Johnson Matthey. The total consideration of the sale amounts to $75 million at closing which is expected early 2015.

The Energy Storage business of Clariant is the largest hydrothermal Lithium Iron Phosphate (LFP) producer in the world. The lithium ion cathode material is used in electric vehicles and stationary battery applications. In 2013 the Energy Storage business generated around CHF 16 million in sales. The business employs around 100 employees predominantly in Canada and Germany.

"The divestment of the Energy Storage business with its LFP technology is part of our focused portfolio management and reallocating capital towards our core areas Care Chemicals, Catalysis and Energy, Natural Resources, and Plastics and Coatings," said Hariolf Kottmann, CEO of Clariant.

Robert MacLeod, Chief Executive of Johnson Matthey said: "This acquisition provides us with a strong position in LFP from which to develop a broad portfolio of battery materials. It further strengthens our battery technologies capability which marks an important step in Johnson Matthey's long term strategy to establish new business areas."