Mumbai: Neogen Chemicals Limited – a leading Indian manufacturer of Bromine-based and Lithium-based specialty chemicals—signed an agreement here recently with MU Ionic Solution Corporation, Japan to acquire manufacturing technology licence for electrolytes in India.
MU Ionic Solutions is a JV between Mitsubhishi Chemical Corporation (MCC) and UBE Corporation and is a group company of The Mitsubhishi Chemical Group – a Japanese conglomerate – that has 5 electrolyte manufacturing plants in Japan, USA, UK and China.
Dr Harin Kanani, managing director, Neogen Chemicals, said that under the agreement, Neogen will obtain a licence from MUIS for manufacturing technology in making its electrolyte solutions at its Indian manufacturing facility with planned max installed capacity of upto 30,000 MT per annum, to meet the growing demand of lithium-ion cell manufacturers of India.
“Commercial production of electrolytic materials is expected to begin in 2025 and is targeted to meet the growing demand of lithium Ion battery manufacturers in India.”
Noting that the agreement will allow Neogen to ensure stringent global standards for its manufacturing plant, he said that it will also help the company to greatly reduce approval times with Lithium Ion battery makers, while also further enhancing confidence of Indian customers.
Replying to questions, he said that it is difficult to import electrolytes and hence the focus on manufacturing it in India through this agreement. “We have signed an MOU with the Gujarat Government and are seeking a new ‘greenfield’ site from them, while our future focus is on looking at exports in electrolytes made here.”
“We are working with 15-18 Indian cell manufacturers by sharing our samples with them. The recent Lithium reserves discovery in India will help do away dependence presently on imports from Chile, Argentina and Australia, though it will take time for India to develop its lithium mines,” he said.
“Lithium metal is slightly explosive, though electrolytes salts are not, but maintaining very low ‘moisture’ and impurities in that is a ‘must,” he added.
He said Neogen achieved Rs 487 crores revenue in December 2022 with Net worth for FY22 being Rs 439.3 crores, five-year Revenue CAGR being 34% and 5-year PAT CAGR (41%).
The lithium battery sector is highlighting strong opportunities including the government focus on +Atmanirbhar+ PLI scheme, which is expected to accelerate EV adoption. The PLI Battery scheme – target incentive outlay – is Rs 18,100 crores, with 60% of battery material being indigenous.
There is Direct Investment of around Rs 45,000 crores in ACC Battery storage manufacturing projects, besides Target Net Savings on import of approximately Rs two lakh crores on account of oil import bill.
