Johnson Matthey’s Hydrogen Bet: How a 2025 Strategic Pivot is Reshaping its Fuel Cell Future
Industry Adoption: Tracking Johnson Matthey’s Shift from Broad Ambition to Focused Commercial Execution in Hydrogen
Between 2021 and 2024, Johnson Matthey (JM) pursued a strategy of broad, ambitious investment in the hydrogen economy. This was defined by foundational commitments like a £1 billion pledge for clean hydrogen R&D by 2030 and an £80 million investment in a UK-based hydrogen gigafactory. The company positioned itself as a future leader, forming critical supply partnerships with major players like Plug Power to secure offtake for its fuel cell components. However, this capital-intensive approach, coupled with a slower-than-anticipated market, resulted in significant financial strain, culminating in a £50 million operating loss for the Hydrogen Technologies unit in fiscal year 2023-24 and subsequent pressure from investors.
The period from 2025 to today marks a decisive inflection point characterized by strategic realignment and financial discipline. Facing market realities, JM executed a sharp pivot. It divested its non-core Catalyst Technologies business to Honeywell for a substantial £1.8 billion and dramatically cut green hydrogen capital expenditure by 83%. This move refocused the company on its core strengths and most promising commercial pathways. Instead of broad bets, JM is now targeting specific, high-value applications. This includes industrializing catalyst-coated membranes (CCMs) through a major partnership with automotive giant Bosch, expanding into the complementary hydrogen internal combustion engine (H₂ICE) market by opening a dedicated testing facility in Sweden, and securing commercial wins in the sustainable aviation fuel (SAF) and e-fuels sectors. This shift from speculative investment to disciplined execution across fuel cells, H₂ICE, and e-fuels demonstrates a more mature, de-risked strategy aimed at achieving profitability, with the hydrogen business now on a clear path to breakeven by the 2025/26 fiscal year.
Table: Johnson Matthey’s Strategic Investments in Hydrogen & Fuel Cell Technologies
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Gothenburg H₂ICE Testing Facility | December 2025 | Officially opened its first dedicated hydrogen internal combustion engine (H₂ICE) facility in Sweden, following a £2.5 million ($3.3 million) investment over three years. The site will test emission control systems for engines up to 600kW, targeting the heavy-duty vehicle market. | H2-View News: Johnson Matthey opens first hydrogen ICE … |
| Sale of Catalyst Technologies | May 2025 | Agreed to sell its Catalyst Technologies business to Honeywell for £1.8 billion in cash. This divestment streamlines JM into a more focused business centered on core growth areas like hydrogen fuel cell components and PGM catalysts. | Honeywell Acquires Johnson Matthey’s Catalyst … |
| Hydrogen Technology Capex Reduction | January 2025 | Announced an 83% cut in capital expenditure for green hydrogen technologies under investor pressure. The move is designed to improve cash flow and accelerate the Hydrogen Technologies division’s path to breakeven. | Johnson Matthey slashes green hydrogen spending by 83 … |
| Jiading, Shanghai Plant Expansion | January 2025 | Achieved structural completion of its expanded membrane electrode assembly (MEA) production plant in Shanghai. This investment significantly increases manufacturing capacity to meet growing fuel cell demand in China. | Johnson Matthey Advances Hydrogen Energy in Jiading |
| Investment Reduction | May 2024 | Announced a reduction in hydrogen business investments due to the sector’s slower-than-expected development, following a £50 million operating loss for the unit in the 2023-24 financial year. | Johnson Matthey reduces hydrogen investments due to … |
| Jiading, Shanghai CCM Facility | July 2023 | Signed an investment agreement to build a new Catalyst Coated Membrane (CCM) production facility in Shanghai to serve the growing Chinese market for FCEVs and green hydrogen. | Johnson Matthey signs agreement for hydrogen investment … |
| Royston Gigafactory | July 2022 | Announced an £80 million ($96 million) investment to build a hydrogen gigafactory in Royston, UK, with a planned initial annual capacity of 3 GW for PEM fuel cell components. | Johnson Matthey announces new hydrogen gigafactory to … |
| Clean Hydrogen Pledge | November 2021 | Pledged to invest approximately £1 billion in clean hydrogen technology R&D and deployment by 2030, signaling a major strategic commitment to the sector. | JM pledge to invest in clean hydrogen tech by 2030 |
Table: Johnson Matthey’s Key Hydrogen and Fuel Cell Partnerships
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Global Hydrogen Mobility Alliance | July 2025 | Joined as a founding member to contribute expertise in developing efficient and durable fuel cells, aiming to accelerate the adoption of hydrogen technologies alongside over 30 major companies. | press release |
| John Cockerill Hydrogen and ETFuels | April 2025 | Partnered to develop a large-scale e-methanol project to produce 120,000 tons annually, leveraging JM’s catalyst and process technology in the sustainable fuels value chain. | Gulf States Lead the Charge in U.S. Hydrogen Transition |
| Cummins, PHINIA, and Zircotec (“Project Brunel”) | March 2025 | Successfully collaborated on a 6.7-litre hydrogen ICE that achieved over 99% reduction in tailpipe carbon emissions. JM provided the advanced after-treatment system. | Cummins and partners celebrate successful hydrogen … |
| Bosch | February 2025 | Entered a long-term strategic collaboration to jointly develop and produce high-performance catalyst coated membranes (CCMs), combining JM’s catalyst leadership with Bosch’s manufacturing scale. | Johnson Matthey and Bosch agree long-term collaboration … |
| Reolum | January 2025 | JM’s e-methanol technology was selected for the La Robla Nueva Energia project in Spain to produce e-methanol from renewable hydrogen and captured CO₂. | JM and Reolum partnership | Johnson Matthey |
| Hystar | May 2023 | A three-year strategic supply agreement to provide MEAs for Hystar’s energy-efficient PEM electrolysers, aimed at scaling up green hydrogen production. | Johnson Matthey and Hystar agree strategic partnership |
| SFC Energy | April 2023 | Expanded a strategic partnership to collaborate on next-generation hydrogen fuel cells and direct methanol fuel cell components. | Johnson Matthey and SFC Energy expand their strategic … |
| Microsoft Azure Quantum | April 2023 | R&D collaboration to use high-performance computing and AI to accelerate the discovery and design of new electrocatalyst materials for fuel cells. | Microsoft and Johnson Matthey join forces to speed up … |
| Plug Power | January 2023 | A long-term strategic partnership where JM supplies catalysts, membranes, and CCMs to help Plug Power meet its ambitious revenue targets ($5B by 2026, $20B by 2030). | News Details |
| REFIRE | November 2021 | Technology partnership to supply MEAs for fuel cell systems in commercial vehicles in China, powering 170 new heavy-duty FCEVs in six months. | REFIRE | Johnson Matthey |
Geography: Johnson Matthey’s Pivot from UK-Centric Investment to Global Market Penetration
Between 2021 and 2024, Johnson Matthey’s geographical strategy was anchored by a major domestic investment in the UK—the £80 million, 3 GW Royston gigafactory—and targeted entries into the world’s two largest future hydrogen markets: China and the US. In China, JM established a presence through its MEA supply partnership with REFIRE and the 2023 agreement to build a new CCM factory in Shanghai. Simultaneously, the landmark partnership with Plug Power provided a strategic corridor into the North American market, which was gaining momentum from the Inflation Reduction Act.
From 2025, this strategy has evolved from establishing footholds to executing a multi-pronged global expansion. The structural completion of the Shanghai plant in January 2025 signals a concrete move from planning to production, solidifying JM’s position to capture growth in Asia. Critically, the company has expanded its European presence beyond the UK, opening a dedicated H₂ICE testing facility in Gothenburg, Sweden, a hub for the continent’s heavy-duty vehicle industry. This move strategically diversifies its European activities. Furthermore, JM is leveraging its catalyst expertise to secure projects globally, with its e-methanol and SAF technologies being selected for major facilities in Spain (Reolum), Louisiana (SunGas Renewables), and Texas (USA BioEnergy), demonstrating a truly global commercial reach that now extends well beyond its core fuel cell component business.
Technology Maturity: Johnson Matthey’s Journey from R&D Pledges to Commercial-Scale Component Supply
In the 2021–2024 period, Johnson Matthey’s focus was on advancing and preparing its technology portfolio for future scale. While its core CCM and MEA products were commercially available, the key challenge was scaling manufacturing, as evidenced by the plan for the Royston gigafactory. During this time, the company also unveiled enabling technologies at an earlier stage of maturity. This included the launch of HyCOgen® technology for SAF production and the successful lab-scale demonstration of its HyRefine™ recycling process. These initiatives represented crucial R&D milestones but were not yet commercially deployed at scale. The partnership with Microsoft Azure Quantum further underscored this focus on foundational, next-generation R&D to accelerate catalyst discovery.
The period from 2025 to today marks a significant shift from development to commercial validation and deployment. The structural completion of the Shanghai MEA plant moves a major manufacturing project from blueprint to reality. The H₂ICE technology, proven successful in “Project Brunel,” has graduated from a collaborative R&D project to a dedicated business line with its own operational testing facility in Gothenburg. Most importantly, JM’s core CCM technology has achieved a new level of commercial maturity, attracting a long-term industrialization partnership with Bosch, a world-leading automotive supplier. This collaboration validates the performance and scalability of JM’s components for mass-market applications. Finally, its recycling technology has advanced from a lab demo to a proven technique that recovers 92% of platinum, validating the economic and environmental case for a circular PGM supply chain.
Table: SWOT Analysis of Johnson Matthey’s Hydrogen Strategy (2021-2025)
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Deep expertise in catalyst and PGM chemistry; early-mover commitment with a £1B pledge and a key partnership with Plug Power. | Strengthened balance sheet with £1.8B cash from divestment; a diversified portfolio including H₂ICE and e-fuels; and commercial validation through a partnership with Bosch. | The company leveraged its core expertise to build a financially de-risked and diversified business, moving from ambitious pledges to tangible, high-value commercial agreements. |
| Weaknesses | High cash burn in the Hydrogen Technologies unit, leading to a £50M operating loss in FY23-24 and significant pressure from its largest shareholder, Standard Investments. | Reliance on key partners like Bosch and Plug Power for scaling; reduced long-term speculative investment (83% capex cut) could limit participation in future unforeseen growth areas. | The acute financial weakness of high cash burn was resolved through divestment and cost-cutting, but this created a new strategic challenge of ensuring growth within a more constrained investment framework. |
| Opportunities | Securing offtake for future production via the Plug Power deal; capturing growth in China’s nascent FCEV market through the REFIRE partnership and planned Shanghai factory. | Capitalizing on the heavy-duty transport decarbonization via a dual-track fuel cell and H₂ICE strategy; becoming a Tier 1 supplier to the automotive industry via the Bosch collaboration. | The opportunity landscape narrowed from broad market growth to specific, high-margin pathways. The success of “Project Brunel” validated the H₂ICE market as a tangible, near-term opportunity. |
| Threats | Slower-than-expected development of the global hydrogen market, risking stranded assets on major investments like the Royston gigafactory. | Intensifying competition in the CCM/MEA market; potential for H₂ICE to be a short-lived transitional technology, limiting long-term ROI on the Gothenburg facility. | The general threat of a slow market has evolved into a more specific risk of competitive pressure and the technological lifecycle of its chosen pathways. |
Forward-Looking Insights and Summary
Johnson Matthey’s journey through 2025 reveals a company that has successfully navigated the turbulent early stages of the hydrogen market, emerging with a more resilient, focused, and commercially-driven strategy. The most recent data signals a clear path forward, and market actors should watch three key indicators in the year ahead. First, all eyes will be on the financial performance of the Hydrogen Technologies division as it targets its goal of breaking even by the end of the 2025/26 fiscal year; hitting this target will be the ultimate validation of its strategic pivot. Second, the market will anticipate the first commercial outputs from the JM-Bosch collaboration, as securing a position on a major vehicle platform would be a monumental win. Finally, attention will turn to the new H₂ICE business to see if the Gothenburg facility can translate technical leadership into commercial supply agreements with heavy-duty vehicle manufacturers.
The clear trend is a move away from speculative, broad-based investment toward a disciplined focus on profitable niches. The rapid expansion into SAF and e-fuels, demonstrated by multiple project wins in 2025, is gaining significant traction and is poised to become a major pillar of growth alongside the core fuel cell components business. Johnson Matthey’s dual-track approach in transport—advancing both fuel cells and H₂ICE—appears to be a savvy hedge, allowing it to capitalize on decarbonization regardless of which technology wins out in the near term. The coming year will be less about bold new pledges and more about the quiet, crucial work of execution.
Frequently Asked Questions
Why did Johnson Matthey change its hydrogen strategy in 2025?
The change was a direct response to financial pressures and a slower-than-anticipated hydrogen market. The company’s Hydrogen Technologies unit incurred a £50 million operating loss in fiscal year 2023-24, prompting a pivot from broad, capital-intensive ambitions to a more focused and financially disciplined strategy aimed at achieving profitability faster.
What are the three main technology areas Johnson Matthey is focused on now?
Following its strategic realignment, Johnson Matthey is concentrating on three core areas: 1) Industrializing catalyst-coated membranes (CCMs) for fuel cells, validated by its partnership with Bosch; 2) Expanding into the hydrogen internal combustion engine (H₂ICE) market with a new dedicated testing facility; and 3) Securing commercial projects in the sustainable aviation fuel (SAF) and e-fuels sectors.
How did Johnson Matthey fund this strategic pivot and improve its finances?
The company executed two key financial moves. It generated £1.8 billion in cash by selling its Catalyst Technologies business to Honeywell, which streamlined the company and strengthened its balance sheet. It also cut capital expenditure in its green hydrogen division by 83% to reduce cash burn and align spending with more immediate commercial opportunities.
What is the significance of the partnership with Bosch?
The long-term collaboration with Bosch is a crucial commercial validation for Johnson Matthey’s fuel cell technology. It combines JM’s expertise in high-performance catalyst-coated membranes (CCMs) with Bosch’s world-leading industrialization and manufacturing scale. This partnership is designed to accelerate the production of components for mass-market automotive applications, moving JM from a component developer to a potential Tier 1 supplier.
What is the main goal for JM’s hydrogen business, and what should we watch for next?
The primary goal is for the Hydrogen Technologies division to reach financial breakeven by the 2025/26 fiscal year. In the year ahead, key indicators to watch will be: hitting this breakeven target, announcing the first commercial vehicle platform wins from the JM-Bosch collaboration, and securing the first commercial supply agreements for its H₂ICE emission control systems.
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