Neogen Chemicals today spurted up almost 10% to an intraday high at Rs.1550 and volumes, which on a 2-week average were less than 4k shares, today jumped up to 28k shares. Its 52-week high is at Rs.1678.
The company, which makes Bromine and Lithium-based specialty chemicals, has today signed an agreement with MU Ionic Solutions Corporation, Japan.
MU Ionic Solutions (MUIS) is a JV between Mitsubishi Chemical Corporation (MCC) and UBE Corporation and is a group company of Mitsubishi Chemical Group (the group) a Japanese conglomerate.
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 upto 30,000 MT per annum.
These electrolytes will be targeted by Neogen to meet the growing demand of lithium-ion cell manufacturers in India. It will also help Neogen to greatly reduce approval times with Lithium Ion Battery makers.