Neogen Chemicals rises after subsidiary inks JV pact for participating in Lithium-Ion Battery business

Neogen Chemicals advanced 3.78% to Rs 1458 after the company announced that its wholly owned subsidiary Neogen Ionics (NIL) has entered into a joint venture agreement (JVA) with Morita Investment.

Morita Investment (MIL) is wholly owned subsidiary of Morita Chemicals Industries Co. (MCL).

Morita Chemicals which is a 100-plus year old Japanese chemicals company and is a leading player in lithium salt manufacturing globally for more than 30 years. It has presence across 31 nations globally and works in close cooperation with global battery manufacturers. In addition to its plants in Japan, it has 2 plants for LiPF6 in China and has presence in Europe and USA.

Neogen Ionics is a wholly owned subsidiary of the Company and is engaged in the manufacturing of Lithium-Ion Battery materials which includes manufacturing electrolytes and Lithium electrolyte salts needed for electrolytes and other speciality new generation organic and inorganic chemicals and allied activities. NIL has presence in India, having its plant located at Pakhajan, Gujarat and Dahej SEZ, Gujarat.

NIL and MIL have entered into a JVA with the object to utilise the technological and manufacturing capabilities of both organisations and to utilise these synergies to participate in the rapidly growing Lithium-Ion Battery business.

To facilitate the same both the parties shall invest in Neogen Morita New Materials Limited (NML) the wholly owned subsidiary of NIL.

NML shall carry on a business of production, development and sale of solid LiPF6 salt, (and other new materials, related products and services as may be decided by parties to the joint venture from time to time) which is a key ingredient for producing electrolyte used in Lithium-Ion Batteries.

NIL and MIL have agreed to invest in NML, provided that NIL shall own a minimum of 80% of the share capital of NML and MIL shall own a maximum of 20% of the share capital of NML.

The amount of investment will be determined after the detailed engineering exercise and will be invested by NIL and MIL in the ratio of their shareholding, the company said in a statement.

Neogen Chemicals is India's one of the leading manufacturers of bromine-based and Lithium-based specialty chemicals. Its products are used in pharmaceutical and agrochemical intermediates, engineering fluids, electronic chemicals, polymer additives, water treatment, construction chemicals, and aroma chemicals, flavours and fragrances, specialty polymers, chemicals and vapour absorption chillers original-equipment manufacturers and with new upcoming usage in lithium-ion battery materials for energy storage and electric vehicles (EV) application.

The company's consolidated net profit declined 10.55% to Rs 10.26 crore despite a 3.77% increase in revenue to Rs 186.73 crore in Q1 FY26 over Q1 FY25.

Powered by Capital Market - Live News