Synopsis:
Neogen Ionics has partnered with Japan’s Morita Investment to form a JV for manufacturing lithium-ion battery material in Gujarat. Neogen will hold an 80% stake, aiming to boost global reach and support India’s clean energy goals.
The shares of the Chemical company, specializing in the manufacture of specialty chemical compounds, particularly focusing on bromine-based compounds, Grignard reagents, and inorganic lithium salts, jumped by upto 5 percent after signing an agreement with a Japanese company to collaborate in the lithium-ion battery sector.
With a market capitalization of Rs. 3,843.41 Crores on Monday, the shares of Neogen Chemicals Ltd rose by 4.9 percent after making a high of Rs. 1475.10 compared to its previous closing price of Rs. 1404.95.
Neogen Chemicals Limited has announced that its wholly owned subsidiary, Neogen Ionics Limited (NIL), has entered into a Joint Venture Agreement (JVA) with Morita Investment Limited (MIL), a subsidiary of Japan-based Morita Chemical Industries Co. Ltd., to jointly participate in the fast-growing lithium-ion battery materials space.
Under the agreement, both parties will invest in Neogen Morita New Materials Limited (NML), currently a wholly owned domestic subsidiary of NIL, which will be engaged in the production, development, and sale of solid LiPF₆ salt, a key electrolyte material for lithium-ion batteries. As per the JVA, NIL will hold a minimum of 80%, while MIL will hold up to 20% of NML’s share capital.
The JV leverages MIL’s global expertise and 30+ years of experience in lithium salt manufacturing and is expected to boost NML’s access to international markets, improve technological reliability, and enhance NIL’s capabilities in the battery materials business.
The manufacturing unit for this JV will be set up in Pakhajan, Gujarat, and will support India’s growing push for clean energy solutions. This marks one of the first Indo-Japanese joint ventures in the lithium-ion battery materials sector and is seen as a significant strategic move for Neogen Chemicals to establish itself as a key player in the global battery supply chain.
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Financials & Others
The company’s revenue rose by 3.77 percent from Rs. 180 crore to Rs. 187 crore in Q1FY25-26. Meanwhile, the Net profit declined from Rs. 11 crore to Rs. 10 crore during the same period.
Neogen Chemicals Ltd is a prominent Indian specialty chemical company, incorporated in 1989 and headquartered in Thane, Maharashtra. The business is well-recognized for its expertise in bromine and lithium-based chemistry, supplying high-value compounds and intermediates for pharmaceuticals, agrochemicals, engineering, and specialty chemical sectors both in India and across the globe, including Europe, the USA, Japan, and the Middle East.
The company has evolved from manufacturing a handful of products to offering a diverse portfolio of numerous specialized chemicals, with significant strength in custom synthesis and contract manufacturing. The company operates three sophisticated manufacturing facilities in Maharashtra and Gujarat, continually expanding capacity to meet rising demand.
Written by Sridhar J
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