Johnson Matthey’s PGM Recycling Strategy: Dominating the 2025 Clean Energy Supply Chain

Industry Adoption: Johnson Matthey’s Pivot from Foundational Work to Commercial Dominance in PGM Recycling

Between 2021 and 2024, Johnson Matthey (JM) solidified its position as the world’s largest secondary refiner of Platinum Group Metals (PGMs), laying the strategic groundwork for a circular economy. The company focused on innovation and expansion, launching its HyRefine™ technology at a lab scale to recycle fuel cell components and opening a dedicated fuel cell recycling plant in Zhangjiagang, China. This period was characterized by building a foundation—setting a target for 75% recycled PGM content in its products by 2030 and forming critical partnerships with primary suppliers like Sibanye-Stillwater and recycling specialists like EMR and Stena Recycling. These moves demonstrated an early but broad application of its recycling expertise, extending from traditional autocatalysts to emerging EV battery and hydrogen sectors. However, the business faced headwinds, with a 35% decline in PGM Services operating profit in the first half of 2024, reflecting volatile market dynamics.

The period from 2025 to today marks a significant inflection point, shifting from foundational work to aggressive strategic execution and commercialization. A key catalyst was the agreement to sell its Catalyst Technologies business to Honeywell, a move designed to create a leaner, more cash-generative company focused on its core Clean Air and PGM Services divisions. This renewed focus is validated by a sharp increase in high-profile commercial collaborations. The partnership with Bosch to produce catalyst coated membranes (CCMs) for fuel cells, and technology agreements with SunGas Renewables and USA BioEnergy for biomethanol and sustainable aviation fuel (SAF) production, show JM embedding its technology directly into the commercial-scale infrastructure of the energy transition. This shift from pilot-level innovation to enabling large-scale production signals that the market is moving past early adoption. The threat of a declining internal combustion engine (ICE) market is now being directly addressed by transforming its core recycling competency into a critical enabler for the hydrogen and biofuels economies, creating new, substantial revenue opportunities.

Table: Johnson Matthey’s Strategic Investments in PGM Recycling and Clean Technology

Table: Johnson Matthey’s Key PGM Recycling and Clean Tech Partnerships (2021-2025)

Geography: Johnson Matthey’s Global PGM Recycling Footprint

Between 2021 and 2024, Johnson Matthey’s geographic strategy was one of targeted global expansion to secure footholds in key emerging markets. The opening of the fuel cell recycling plant in Zhangjiagang, China, in 2022 was a direct move to create a closed-loop PGM supply chain within the world’s largest and fastest-growing automotive and hydrogen market. Simultaneously, activities were concentrated in Europe and the UK, evidenced by partnerships with Stena Recycling (pan-European), Enapter (Germany-based), European Metal Recycling (UK), and Kellas Midstream (UK). In North America, the focus was on policy and ecosystem development, highlighted by the partnership with the U.S. Department of Energy consortium to define a national hydrogen recycling strategy. This shows a deliberate effort to build operational presence in Asia while establishing a strategic and supply chain presence in Europe and North America.

From 2025 onwards, the geographic focus has pivoted towards commercial deployment within established Western markets. The United States has emerged as a primary hub for offtake agreements, with JM’s technology selected for large-scale biofuels projects by SunGas Renewables and USA BioEnergy (Texas). This indicates the US is moving from planning to implementation, driven by supportive policy like the Inflation Reduction Act. Europe remains a critical center for technology and manufacturing partnerships, demonstrated by the collaboration with Germany’s Bosch to produce CCMs and the e-methanol project with Reolum in Spain. The risk of geopolitical concentration in primary PGM supply (South Africa, Russia) is being actively mitigated by building robust, circular supply chains within the major demand centers of North America and Europe, positioning JM as a key domestic enabler of the energy transition in these regions.

Technology Maturity: Johnson Matthey’s Path from Lab-Scale Innovation to Commercial Deployment

In the 2021–2024 period, Johnson Matthey’s technology development was centered on proving the viability of next-generation recycling processes and establishing commercial readiness. The key validation point was the successful lab-scale demonstration of the HyRefine™ technology in 2023, a world-first process for recycling both PGMs and the valuable ionomer from fuel cell membranes. This was a crucial R&D milestone. Concurrently, JM commercialized its existing expertise, launching a 100% recycled PGM offering via a mass balance methodology in the UK and US and commencing commercial-scale fuel cell recycling in China. The technology was a mix of commercial-ready (autocatalyst and basic fuel cell recycling) and pilot/lab-scale (advanced HyRefine™), indicating a portfolio approach to de-risking future revenue streams. Investor interest was tied to the potential of these emerging technologies to create a circular hydrogen economy.

The period from 2025 to today demonstrates a clear shift from R&D to commercial-scale deployment and industrialization. The development of the eMERALD™ flowsheet for commercial-scale e-methanol production and the continued development of the HyRefine™ process signal that these technologies are moving out of the lab and are being engineered for industrial application. The most significant validation point is the nature of recent partnerships: the collaboration with Bosch is not for R&D but for the *production* of CCMs. Similarly, agreements with USA BioEnergy and SunGas Renewables involve the deployment of JM’s established catalyst technologies in large-scale commercial facilities. This transition from demonstrating capability to supplying commercial projects indicates that the technology has reached a maturity level where it can be relied upon for major capital projects, significantly increasing its market value and signaling to investors that the time for revenue generation from these new sectors has arrived.

Table: SWOT Analysis of Johnson Matthey’s PGM Recycling Strategy

Forward-Looking Insights and Summary

The data from 2025 signals an acceleration of Johnson Matthey’s strategy to become the indispensable materials technology partner for the energy transition. The coming year will likely see the company convert its technological leadership in PGM recycling into further high-value commercial contracts, particularly in the hydrogen and sustainable fuels sectors. The critical signal to watch is the progress of the Bosch collaboration; successful scaling of CCM production would cement JM’s role in the future of mobility and validate its strategic pivot.

Market actors should pay close attention to the commissioning of the new PGM refinery. Its completion will not only expand capacity but also trigger a projected drop in capital expenditure, significantly boosting cash generation and shareholder returns. Concurrently, the forecasted deficits in the primary PGM market will amplify the strategic importance and profitability of JM’s recycling operations, giving the company significant pricing power and market influence. While the hydrogen technology portfolio is gaining traction, the expansion into battery recycling via the OnTo Technology partnership is an emerging area to monitor, as it represents a significant diversification of its circular economy model. In essence, Johnson Matthey is no longer just a recycler; it is leveraging its circular supply chain as a competitive weapon to dominate the material science backbone of the net-zero economy. Tracking these strategic deployments will be crucial for any stakeholder in the energy, automotive, and industrial sectors.

Frequently Asked Questions

What is the primary reason for Johnson Matthey’s strategic shift in 2025?
The primary reason was the agreement to sell its Catalyst Technologies business to Honeywell. This strategic move was designed to create a leaner, more focused, and cash-generative company, allowing it to concentrate on its core Clean Air and PGM Services divisions and aggressively commercialize its technologies for the clean energy sector.

How is Johnson Matthey using its recycling expertise to counter the decline of the internal combustion engine (ICE) market?
Johnson Matthey is directly addressing the decline of the ICE market by pivoting its PGM recycling competency to support emerging clean energy economies. It is supplying recycled PGMs for hydrogen fuel cells (through partnerships with Bosch and Plug Power) and for the production of sustainable fuels (with USA BioEnergy and SunGas Renewables), thus turning the threat from its legacy market into a new, substantial revenue opportunity.

What is the significance of the partnerships with companies like Bosch and USA BioEnergy?
These partnerships signify a major shift from R&D to commercial-scale deployment. Unlike earlier foundational work, these agreements involve supplying JM’s technology for large-scale production facilities, such as producing catalyst coated membranes (CCMs) with Bosch and providing technology for a commercial sustainable aviation fuel (SAF) plant with USA BioEnergy. This proves the market is moving past early adoption and that JM’s technology is mature enough for major capital projects.

Why is Johnson Matthey’s goal of using 75% recycled PGM content important?
This target is important for several reasons. It embeds a circular economy model at the core of its business, securing a sustainable and cost-effective feedstock for its products. This strategy mitigates reliance on volatile primary PGM markets and geopolitical supply risks. Furthermore, as noted in the SWOT analysis, using recycled PGMs has a 98% lower carbon footprint, making it a key commercial differentiator in the clean energy supply chain.

What financial benefits are expected from the completion of the new PGM refinery?
The new PGM refinery is expected to bolster recycling capabilities and improve cash generation. According to the company’s full-year results, capital expenditure is projected to fall to approximately £120 million by FY 2027/28 after the refinery’s completion. This reduction in spending will significantly boost the company’s cash flow and its ability to deliver shareholder returns.