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DJ Johnson Matthey May Face Chinese Battery Competition -- Market Talk

· 02/05/2021 05:36

1036 GMT - Johnson Matthey could face increased Chinese competition in the expanding electric-vehicle battery market, says Barclays, cutting its recommendation to underweight from equalweight and its price target to 2570 pence from 2640p. Barclays says Chinese battery producers are likely to benefit as key patents for lithium ferro-phosphate battery technology expire in the next year, allowing them to more easily export LFP batteries as well as produce them for domestic Chinese customers. "This expansion could shrink total addressable market estimates for producers of high-nickel cathodes like Johnson Matthey," Barclays analysts say. "In time, we expect high-nickel pricing in Europe to come under pressure too. JM looks most levered to this risk, with valuation close to peak." Shares fall 2.6% to 2932p. (philip.waller@wsj.com)

(END) Dow Jones Newswires

February 05, 2021 05:36 ET (10:36 GMT)

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