- 11 Apr 2023
- ICICIdirect Research
NEOGEN CHEMICALS SIGNS AGREEMENT WITH MU IONIC SOLUTIONS TO ACQUIRE MANUFACTURING TECHNOLOGY LICENSE FOR ELECTROLYTES
NEOGEN - 1660 Change: 1.20 (0.07 %)News: Neogen Chemicals has signed an agreement with MU Ionic Solutions Corporation, Japan. As per the terms of the agreement, Neogen will obtain the license from MUIS for proprietary and confidential manufacturing technology for making Neogen’s electrolyte solutions at its manufacturing facility in India with a planned max installed capacity of up to 30,000 MT per annum. These electrolytes will be targeted by Neogen to meet the growing demand of lithium-ion cell manufacturers in India
Views: This acquisition will help Neogen to strengthen its position in the electrolyte market in India. The standardised Japanese technology can help to improve battery performance, including power output and lifetime, with functional additives tailored to the purpose, which will ultimately led to gain customers confidence in domestic market. The capex for additional electrolyte capacity beyond the earlier guidance of 10000 MT by FY26 will depend upon additional demand from customer
Impact: Positive