Neogen Ionics advances Rs 1,795 crore battery-materials plan

Neogen Ionics Limited, referred to as Neogen Ionics, is developing a Rs 1,795 crore battery-materials programme at Dahej and Pakhajan, with Rs 1,537 crore of cumulative capital expenditure reported to date. The planned network comprises 32,000 metric tonnes of electrolyte capacity and 5,500 metric tonnes of lithium electrolyte salts and additives capacity, while commercial lithium-salt supplies have started to two customers.

What battery-materials capacity is Neogen Ionics building?

Neogen Ionics is planning 32,000 metric tonnes (MT) of electrolyte capacity and 5,500 MT of lithium electrolyte salts and additives capacity across Dahej Special Economic Zone (SEZ) and Pakhajan in the Dahej Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR). The disclosed land area totals 270,740 square metres, including 264,285 square metres at Pakhajan and 6,455 square metres at Dahej SEZ.

The manufacturing plan is phased from FY25 to FY27, with the Pakhajan project accounting for 30,000 MT, or most of the planned electrolyte capacity. Dahej SEZ is listed with 2,000 MT of electrolyte capacity and 2,500 MT of salts and additives across its FY25, FY26 and FY27 additions, while Pakhajan is listed with 3,000 MT of salts and additives in FY27.

The plan combines electrolyte production with a separate salts-and-additives platform that includes lithium hexafluorophosphate, or LiPF6. The capacity split shows that Pakhajan is intended to be the principal electrolyte site, while Dahej has a larger role in the staged build-out of lithium electrolyte salts and additives.

How much is Neogen Ionics spending and when will projects finish?

Neogen Ionics has estimated a total project cost of Rs 1,795 crore for Dahej Phase 1 and Pakhajan Phase 2, against cumulative capital expenditure, or CAPEX, of Rs 1,537 crore reported to date. Dahej Phase 1 is budgeted at Rs 428 crore with targeted completion by February 2027, while Pakhajan Phase 2 is budgeted at Rs 1,367 crore and is expected to be completed by March 2027.

Pakhajan Phase 2 has a budget Rs 939 crore higher than Dahej Phase 1, making it the larger part of the two-project programme. Neogen Ionics said its project specifications incorporate design optimisation following a transition to advanced Japanese technology, along with greater localisation of critical sub-components to reduce import dependence and support long-term operating reliability.

Neogen Ionics said both projects have backing through promoter equity infusion and planned joint-venture partner funding support. Separately, Neogen Chemicals raised Rs 600 crore through its first qualified institutions placement, or QIP, which was oversubscribed 6.5 times; the stated uses were debt repayment, incremental business requirements and growth opportunities, without a disclosed allocation solely to the battery-materials programme.

As of September 30, 2026, Neogen Chemicals reported consolidated total debt of Rs 1,560 crore, net debt of Rs 1,095 crore and liquid investments, including fixed deposits, of Rs 465 crore. Consolidated total assets were Rs 4,005 crore, compared with Rs 2,302 crore on September 30, 2025, but the presentation does not assign debt, cash or asset balances specifically to Neogen Ionics.

What has Neogen Ionics commissioned and validated at Dahej?

Neogen Ionics has fully commissioned a 2,000 MT electrolyte plant at Dahej, listed as completed in FY25. Mechanical assembly at the electrolyte facility is complete and trial runs have begun, while facility validation and product approvals by major domestic battery makers are under way; Neogen Ionics also said it had received electrolyte recipes from five to six giga factories for joint trials.

For lithium electrolyte salts and additives, 200 metric tonnes per annum (MTPA) has been commissioned and first approval material has been shipped to customers. A further 1,000 MTPA was commissioned in Q2 FY27, while trial production continued for the remaining 300 MTPA of the 1,500 MTPA project, taking commissioned capacity at the reported stage to 1,200 MTPA.

Neogen Ionics expects to commission another 1,000 MT of lithium electrolyte salts and additives and 500 MT of an additional intermediate in H2 FY27. Its roadmap stated that mechanical completion timelines remained on schedule for electrolyte in H1 FY27 and electrolyte salts in H2 FY27, while the electrolyte operation continued through validation and customer-approval work.

Which customer approvals and supplies has Neogen Ionics disclosed?

Neogen Ionics has secured provisional approvals from five major international customers for lithium electrolyte salts, completed final site audits for three United States-based electrolyte manufacturers, and started commercial supply with two customers. These disclosed steps place the salts business beyond initial qualification material, although the presentation does not name customers or quantify contracted volumes.

For electrolyte, Neogen Ionics said validation and product approvals with domestic battery makers were under way, alongside joint trials using recipes from five to six giga factories. It also reported active discussions with domestic and international cell manufacturers for electrolyte and lithium-salt supply, but did not disclose supply contracts arising from those discussions.

Management said upcoming advanced chemistry cell, or ACC, plants in India and sourcing by United States electrolyte manufacturers from Indian non-foreign entity of concern, or non-FEOC, suppliers could support a scale-up in Q4 FY27 and beyond. This is management’s outlook rather than a reported order book; the reported commercial milestone is supply to two customers, alongside the five provisional approvals and three completed audits.

How is Neogen Ionics transferring its lithium salt undertaking?

Neogen Ionics has executed a Business Transfer Agreement, or BTA, with step-down subsidiary Neogen Morita New Materials Limited, or NML, to consolidate the lithium-ion electrolyte salt undertaking under NML. The undertaking includes LiPF6 and is being transferred on a going-concern basis for lump-sum cash consideration of Rs 245 crore.

Morita had already infused Rs 77 crore through a preference allotment, according to the presentation. The BTA relates to the lithium-ion electrolyte salt undertaking rather than the full 32,000 MT electrolyte platform, and the presentation does not disclose a closing date or post-transfer operating details beyond the consideration and preference allotment.

Neogen Chemicals reported consolidated revenue of Rs 546.3 crore in H1 FY27, up 38% from Rs 395.4 crore in H1 FY26, while earnings before interest, tax, depreciation and amortisation rose 52% to Rs 93.6 crore. These are consolidated company figures and are not disclosed as revenue or profitability generated by Neogen Ionics.

Conclusion

Neogen Ionics is moving from construction toward commissioning, qualification and initial commercial supply through a Rs 1,795 crore programme spanning 32,000 MT of electrolyte capacity and 5,500 MT of salts and additives capacity. Progress differs by product: the electrolyte plant is in trial and approval activity, while lithium salts have 1,200 MTPA commissioned, five provisional international approvals and supplies to two customers.

The next disclosed markers are commissioning of another 1,000 MT of salts and additives plus 500 MT of intermediate capacity in H2 FY27, Dahej Phase 1 completion by February 2027 and Pakhajan Phase 2 completion by March 2027. The key unresolved matters are whether electrolyte trials convert into approvals and whether provisional salt approvals and completed site audits result in disclosed commercial volumes.