Johnson Matthey PLC (LSE:JMAT) is in talks about a possible collaboration with Chinese state-run Sinopec's investment arm about decarbonisation technologies in the People's Republic.
The FTSE 100 chemicals company, which recently gained UK support for a hydrogen battery gigafactory, has signed an agreement via its China arm with Sinopec Capital and has started discussions about hydrogen technologies, fuel cells, and decarbonisation.
Sinopec is China's largest oil and petrochemical supplier and second-largest oil and gas producer, also the world's largest refining company and second largest chemical company.
"Sinopec has made its long term development strategic goal and dedicated to become a No.1 hydrogen company in China and a leading clean energy company in the world," said Zhou Meiyun, deputy chair of Sinopec Capital, in a statement.
The company said it is making efforts to reach carbon neutralisation target before 2060.
"We wish to have a deep collaboration with Johnson Matthey in carbon reduction and green energy fields to fully support achieving China's national strategic goal of 30/60 carbon peak/carbon neutralisation."
Johnson Matthey's China president, Mark Su, said the business is China's leading automotive catalyst producer and a "leading player" across syngas and hydrogen fuel cells, as well as being the country's first commercial-scale producer of membrane electrode assembly (MEA) components for fuel cells.
Shares of Johnson Matthey were down 1.51% to 2,155.00p.