Neogen Chemicals up 7% on reports of tech partnership with Japanese major

Shares of Neogen Chemicals climbed nearly 7 percent in early trade on April 10 following reports that said the company was likely to announce a technology transfer arrangement with a major Japanese conglomerate.

The company has scheduled a press conference at 3:30 pm where the announcement with regards to the arrangement is likely to be done, reports stated.

The stock reacted positively to the news and edged higher to touch an intraday high of Rs 1,445. At 12:18 am, shares of Neogen Chemicals were trading at Rs 1,433 on the National Stock Exchange, clocking 6 percent gains from the previous close.

The arrangement will be for manufacturing of lithium electrodes under the government’s product-linked incentive (PLI) scheme, as per a report by ET-NOW. The company is also expected to provide detailed steps with regards to the electrolyte manufacturing of lithium-ion batteries at its press conference.

The report also stated the chemicals company is likely to manufacture lithium electrodes for Ola Electric, Exide and Amaron domestically.

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The demand for lithium-ion batteries has been on a rapid rise, especially on the back of growing demand for electric vehicles. Most EV players have been importing lithium-ion batteries for the manufacturing of e-vehicles in the domestic market. Hence, the news of Neogen’s foray in the segment sat well with investors of the company.

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