Neogen Chemicals signs agreement with Japan's MU Ionic Solutions Corporation to make electrolyte solutions in India

Neogen Chemicals Limited (Neogen) — one of India’s leading manufacturers of Brominebased and Lithium-based specialty chemicals, announced on Monday that it has signed an agreement with MU Ionic Solutions Corporation, Japan, to make electrolyte solutions at its manufacturing facility in India. Neogen said its target is to meet the growing demand of lithium-ion cell manufacturers in India through this collaboration.

MU Ionic Solutions (MUIS) — a JV between Mitsubishi Chemical Corporation (MCC) and UBE Corporation — is a group company of Japanese conglomerate The Mitsubishi Chemical Group and has track record of being one of the global leaders in electrolytes used in lithium-ion batteries. As per the exchange filing, MUIS owns five electrolyte manufacturing plants located in Japan, USA, UK and China.

The filing states that as per the terms of the agreement, Neogen will obtain the license from MUIS for proprietary and confidential manufacturing technology for making its electrolyte solutions at its manufacturing facility in India with a planned installed capacity of upto 30,000 MT per annum. 

As per the release, this agreement will allow Neogen to ensure quality, reliability, safety and efficiency for electrolytes production at its manufacturing plant. It will also help the company reduce approval times with Lithium Ion battery makers. 

Commenting on the development, Dr Harin Kanani, Managing Director at Neogen Chemicals, said, “We are pleased to be collaborating with one of the global leaders of electrolytes to steer our growth initiatives around lithium-ion battery chemical opportunity in India."

"The group’s 3-decade long electrolyte manufacturing experience will be extremely beneficial for Neogen to build a robust global quality and safety standards approved electrolyte plant in India. With this arrangement, we will be the first Indian company to have a proven global technology, to manufacture electrolytes at scale for lithium-ion batteries," he added.