Neogen Chemicals Powers Up Li-ion Battery Future with Japanese JV
Big news from the chemicals sector! 🚀 Neogen Chemicals Limited has announced a significant strategic move, with its wholly-owned subsidiary, Neogen Ionics Limited (NIL), entering into a Joint Venture Agreement (JVA) with Morita Investment Limited (MIL), a subsidiary of Japan’s Morita Chemicals Industries Co. Limited (MCL), collectively known as the Morita Group.
This exciting partnership aims to leverage the technological and manufacturing prowess of both organizations to make a substantial impact in the booming Lithium-Ion Battery business. The newly formed joint venture entity, Neogen Morita New Materials Limited (NML), which is currently a wholly-owned subsidiary of NIL, will be at the forefront of this initiative.
NML’s core business will involve the production, development, and sale of solid LiPF6 salt, a crucial ingredient for the electrolyte used in Lithium-Ion Batteries. The manufacturing facility for NML is planned for Pakhajan, Gujarat, marking a significant step in India’s advanced materials landscape.
Under the terms of the JVA, Neogen Ionics Limited will hold a minimum of 80% of NML’s share capital, while Morita Investment Limited will hold a maximum of 20%. The total investment amount will be finalized after a detailed engineering exercise, with both partners contributing in proportion to their shareholding.
This collaboration is a landmark moment, representing one of the first joint ventures between an Indian and Japanese company in the Lithium-Ion Battery material space. With Morita Group’s globally proven technology, honed over 30 years, Neogen Ionics expects to significantly enhance the reliability and efficiency of its LiPF6 production. This partnership is also set to open doors to faster access to international markets and secure approvals from global customers.
It’s worth noting that Morita Investment Limited is an independent third-party, ensuring this joint venture does not fall under the purview of related party transactions for Neogen Chemicals. This strategic alliance is poised to strengthen Neogen Chemicals’ position in the high-growth Lithium-Ion Battery value chain, promising a brighter future for advanced material manufacturing. 🔋
source: Corporate Announcement
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