Neogen Chemicals shares rose more than 3% in Monday’s trade after its wholly owned subsidiary, Neogen Ionics Limited (NIL), signed a Joint Venture Agreement with Morita Investment Limited (MIL), a subsidiary of Japan’s Morita Chemicals Industries Co. Limited. The agreement was finalized on August 31, 2025, after board discussions that began the previous day.
The partnership paves the way for the formation of Neogen Morita New Materials Limited (NML), which will focus on the production, development and sale of solid LiPF6 salt, a crucial material used in electrolytes for lithium-ion batteries. Initially, NML will remain a wholly owned subsidiary of NIL, but under the new arrangement, NIL will hold at least 80 percent of its equity while MIL will hold up to 20 percent. The final investment structure will be determined after detailed engineering studies, with both parties contributing funds in line with their ownership.
NML’s manufacturing facility will be set up at Pakhajan in Gujarat, further strengthening Neogen’s position in India’s fast-growing lithium battery materials market. Governance provisions outlined in the agreement allow NIL to nominate up to four directors on NML’s board, while MIL will have the right to nominate one director as long as it holds at least 10 percent equity.
For Morita Chemicals Industries, the deal adds another dimension to its global expansion. The Japanese company, with a legacy of over 100 years and more than 30 years of experience in lithium salt manufacturing, operates facilities in Japan and China and has established its presence across Europe and the United States. MIL was created as its strategic investment arm, enabling partnerships like this with Neogen.
For Neogen Chemicals, the tie-up is expected to strengthen its product portfolio and boost its position in the clean energy value chain. Through its subsidiary NIL, the company already produces electrolytes, lithium electrolyte salts, and other specialty chemicals at plants in Pakhajan and Dahej SEZ, while its corporate headquarters is in Thane, Maharashtra.
Neogen Chemicals shares were up 3.15% at ₹1,448.40 apiece around 9.23 am. It has declined 34.37% this year, so far.
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