Johnson Matthey’s 2025 Hydrogen Pivot: From Electrolyzer Growth to Profitable Enablement

Industry Adoption: Johnson Matthey’s Shift from Broad Hydrogen Expansion to a De-Risked Component Strategy

Between 2021 and 2024, Johnson Matthey (JM) pursued a strategy of broad market enablement, positioning itself as a critical component supplier for a rapidly expanding green hydrogen ecosystem. The company established foundational supply agreements for its Catalyst Coated Membranes (CCMs) and Membrane Electrode Assemblies (MEAs) with a diverse range of electrolyzer OEMs. Key partnerships with PEM leaders like Plug Power and Hystar, and a €20 million investment in AEM innovator Enapter, demonstrated a technology-agnostic approach to embedding its components across the market. This period was defined by ambitious investment pledges, including £1 billion for clean hydrogen by 2030, and significant capacity building, exemplified by the new 3 GW gigafactory in Royston, UK. The goal was clear: supply the “picks and shovels” for the anticipated hydrogen gold rush.

The year 2025 marks a dramatic inflection point. Facing market headwinds and direct pressure from shareholders, JM executed a sharp strategic retrenchment. This pivot was headlined by a drastic 83% cut in green hydrogen investment and the strategic divestment of its blue hydrogen business to Honeywell. The focus shifted from aggressive expansion to near-term profitability, with a publicly stated goal for the Hydrogen Technologies unit—which generated ~$105 million in revenue at a loss—to break even by March 2026. While component supply remains central, the nature of its commercial adoption has evolved. New collaborations, such as the long-term partnership with Bosch, target massive, well-defined end-markets like commercial vehicles. Furthermore, JM is increasingly supplying its proprietary synthesis technologies (e.g., eMERALD™) to large-scale downstream e-fuel projects, like the 120,000-ton-per-year e-methanol facility in Texas with John Cockerill and ETFuels. This creates a market pull for green hydrogen, positioning JM as a technology licensor for bankable, large-scale industrial projects rather than just a component supplier to a nascent OEM market. This new, de-risked approach prioritizes operational efficiency and leverages core PGM chemistry expertise, signaling a move toward a more sustainable and profitable role within the hydrogen value chain.

Table: Johnson Matthey’s Strategic Hydrogen Investments & Divestments (2022-2025)

Table: Johnson Matthey’s Evolving Hydrogen Partnership Ecosystem (2021-2025)

Geography: Johnson Matthey’s Global Footprint Shifts Towards US Project Execution

Between 2021 and 2024, Johnson Matthey’s geographic focus was centered on building a production and innovation base in Europe and expanding into Asia. The flagship investment was the 3 GW hydrogen component gigafactory in Royston, UK, positioning Britain as a core manufacturing hub. Strategic partnerships and investments were also firmly rooted in Europe, including the collaboration with Norway’s Hystar and the €20 million stake in Germany-based Enapter. Simultaneously, JM recognized the importance of the Asian market by signing an investment agreement in July 2023 for a new CCM production facility in Shanghai, China, targeting the country’s accelerating hydrogen economy.

From 2025, while maintaining its established bases, JM’s commercial activity shows a significant gravitational pull toward large-scale project execution in the United States. The selection of its eMERALD™ technology for multiple major e-methanol projects in Texas, including the 120,000-ton-per-year facility with John Cockerill and ETFuels, underscores this shift. This move is driven by the favorable policy environment and clear market demand for e-fuels in the U.S. The $8 million DOE-funded pilot with Oxylus Energy further anchors its presence in the American innovation ecosystem. While Europe remains a key R&D hub, evidenced by the Sweden-based H₂ICE facility and the SuperCell consortium, the most significant new commercial announcements point to North America as the primary near-term region for revenue-generating, large-scale deployments of JM’s downstream technologies.

Technology Maturity: Johnson Matthey’s Transition from Scaling Components to Deploying Integrated Systems

During the 2021-2024 period, Johnson Matthey’s primary focus was on scaling commercially proven PEM electrolyzer and fuel cell components. The construction of the 3 GW Royston gigafactory was a definitive move to take its CCM technology from commercial production to mass manufacturing. The company also engaged in pilot-level diversification by investing in Enapter to explore the potential of AEM technology. Downstream, its HyCOgen™ and e-methanol technologies were market-ready but seeking large-scale validation. A key emerging technology, the HyRefine™ recycling process, was successfully demonstrated at the lab scale in late 2023, signaling a future circularity capability.

In 2025, the technology focus has matured and bifurcated. On one hand, JM is now commercially deploying its synthesis technologies at an unprecedented scale. The selection of its eMERALD™ e-methanol process for giga-scale projects with Reolum in Spain and ETFuels in Texas moves this technology from a product offering to a commercially validated, bankable solution. On the other hand, its core component R&D is advancing into next-generation systems through the SuperCell research program, aiming to develop a step-change in PEM cell efficiency. The HyRefine™ recycling technology is also progressing from the lab to pilot scale, moving closer to commercial reality. This indicates a clear shift: JM is no longer just preparing to supply a future market but is actively delivering integrated technology solutions for today’s large-scale projects while collaborating on the next wave of innovation.

Table: SWOT Analysis of Johnson Matthey’s Hydrogen Strategy Evolution

Forward-Looking Insights and Summary

The data from 2025 paints a clear picture of Johnson Matthey’s path forward: disciplined execution and a relentless focus on profitability. The dramatic spending cuts and divestments are not a retreat from hydrogen but a strategic consolidation around the company’s most defensible and highest-value offerings. The year ahead will be defined by three critical signals that market actors must watch. First is the progress toward the March 2026 breakeven target for the Hydrogen Technologies unit; any deviation will signal the success or failure of this new, leaner model. Second is the commercial traction gained through the Bosch partnership. Successful integration and deployment of JM’s CCMs in Bosch’s automotive stacks would be a massive validation of its technology-enabler strategy. Finally, the final investment decisions (FIDs) for the large-scale e-methanol projects in Texas and Spain are paramount. These FIDs would convert technology selections into significant, recurring revenue streams, proving that JM can successfully monetize its expertise in the downstream Power-to-X market. Johnson Matthey is betting that enabling the hydrogen ecosystem is more profitable than simply building it. The next 12-18 months will reveal if that bet pays off.

Frequently Asked Questions

Why did Johnson Matthey (JM) dramatically cut its green hydrogen investment in 2025?
JM cut its green hydrogen investment by 83% due to direct pressure from shareholders and slower-than-expected market growth. Its Hydrogen Technologies business was generating revenue but operating at a loss, prompting a strategic pivot from aggressive expansion to achieving near-term profitability, with a public goal to break even by March 2026.

What is the core of Johnson Matthey’s new hydrogen strategy?
The new strategy shifts from being a broad supplier to a nascent OEM market to a de-risked approach focused on two areas: 1) Partnering with large system integrators like Bosch to supply components for guaranteed, high-volume end-markets (e.g., commercial vehicles). 2) Licensing its proprietary synthesis technologies (like eMERALD™ for e-methanol) to large-scale, bankable industrial projects, creating a market pull for hydrogen and a new revenue stream.

Has Johnson Matthey exited the hydrogen business?
No, JM has not exited the hydrogen business. It has executed a strategic pivot by divesting its blue hydrogen business to sharpen its focus on green hydrogen. The company continues to supply core components like CCMs and MEAs and is investing in targeted areas like its Shanghai plant and collaborative R&D. The change is a consolidation around more profitable and defensible parts of the hydrogen value chain, not a retreat.

How has JM’s geographic focus changed with the new strategy?
While JM maintains its manufacturing and R&D base in Europe (UK, Sweden) and Asia (China), its primary commercial focus for new, large-scale projects has shifted towards the United States. This is driven by major deals to supply its e-methanol technology to projects in Texas, capitalizing on the favorable policy environment and clear market demand in the U.S. for e-fuels.

What are the key indicators of success for JM’s new hydrogen pivot?
According to the analysis, there are three critical signals to watch: 1) Whether the Hydrogen Technologies unit meets its breakeven target by March 2026. 2) The commercial success and traction of its component supply partnership with Bosch in the automotive sector. 3) The achievement of Final Investment Decisions (FIDs) for the large-scale e-methanol projects that use JM’s technology, which would secure significant, long-term revenue.