Neogen Chemicals Sees Strong Electrolyte Demand Ahead As Gigafactories Ramp Up
Managing Director Dr. Harin Kanani said multiple gigafactories, including those by Exide, Reliance, and Tata, are set to come online over 2026–27.
Neogen Chemicals Ltd. expects a sharp rise in electrolyte volumes next year as Indian battery makers accelerate local cell production following government approvals. Managing Director Dr. Harin Kanani said multiple gigafactories, including those by Exide, Reliance, and Tata, are set to come online over 2026–27, boosting demand for the company’s battery chemicals.
Speaking to NDTV Profit on the outlook, Managing Director Dr. Harin Kanani explained that the company’s business comprises two key components, electrolyte and electrolyte salts. While electrolyte salts are largely sold to international markets, electrolyte demand in India is poised to surge.
Kanani noted that several Indian customers had delayed production ramp-up due to pending government permissions. “Now these customers have received approvals and guided that they will switch their entire in-house cell consumption to local production over the next six months. When they make cells locally, they will need more of our electrolyte,” he said.
The company expects significant volume growth as five to six major players, including Exide, Waaree Energies, Reliance, Tata, and Amara Raja, start gigafactories between 2026 and 2027. Ola Electric’s plans to expand capacity from 5 GWh to 20 GWh further strengthen the demand outlook.
“With these developments, electrolyte volumes should rise substantially next year. This is only the electrolyte part, electrolyte salts continue to see steady international demand,” Kanani added.
Earlier, Neogen Ionics Ltd., a wholly owned subsidiary of Neogen Chemicals Ltd., concluded its joint venture agreement with Morita Investment Ltd., Japan, a wholly owned subsidiary of Morita Chemicals Industries Co. Ltd., following the agreement executed on August 31, 2025. The company in an exchange filing said that the JV is designed to strategically combine the partners' manufacturing and technological expertise, leveraging synergies to capitalise on the rapidly expanding Lithium-Ion Battery market.
