Bromine Based Compounds Manufacturers, Neogen, to Secure Electrolytes Manufacturing Technology through Acquisition from a Japanese Company
Neogen Chemicals Limited (Neogen), one of India's major manufacturers of bromine-based and lithium-based specialty chemicals, signed a licence agreement with MU Ionic Solutions Corporation (MUIS) in Japan, on Monday.
According to the terms of the agreement, Neogen will obtain a licence from MUIS for proprietary and confidential manufacturing technology in order to manufacture Neogen's electrolyte solutions at its manufacturing facility in India, which will have a maximum installed capacity of up to 30,000 MT per year, according to a press release. Neogen will target these electrolytes in order to address the rising demand for lithium-ion cell producers in India.
The partnership will allow Neogen to verify that the manufacturing plant fulfills demanding worldwide quality, reliability, safety, and efficiency criteria for the production of electrolytes. It will also assist the corporation in significantly reducing approval periods with Lithium-Ion Battery manufacturers.
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Neogen is honoured to be the recipient of this first-ever licence issued by MUIS for the part of MCC of electrolyte manufacturing technology anywhere in the world," stated Dr. Harin Kanani, managing director of Neogen Chemicals.
MU Ionic Solutions is a joint venture (JV) between Mitsubishi Chemical Corporation (MCC) and UBE Corporation and a subsidiary of The Mitsubishi Chemical Group (the group), a Japanese conglomerate. The company is one of the global leaders in electrolytes used in lithium-ion batteries, with a 30-year track record and five electrolyte manufacturing units in Japan, the United States, the United Kingdom, and China, according to the statement.
About the Company
Neogen Chemicals Ltd. has been in business for over 30 years and specialises in bromine-based chemicals, Grignard Reagents, and inorganic lithium salts. Mr. Haridas Kanani, a chemical engineer from the Indian Institute of Technology (IIT), Mumbai, started the company.
Neogen has created various bromine price intermediates throughout the years and is a prominent maker of these chemicals. The specialty chemical product of the company is used in pharmaceutical and agrochemical intermediates, engineering fluids, electronic chemicals, polymer additives, water treatment, construction, aroma chemicals, flavours and fragrances, specialty polymers, VAM original-equipment manufacturers in India, with new upcoming usage in lithium-ion battery materials for energy storage and EV application, and across 29 countries (USA, Europe, Japan, and the Middle East) with over three decades of experience. Many of our clients have been with us for a long time.
Bromine Price Trend and Forecast
North America
Overall, market sentiments in the North American Bromine Production market were divided. Bromine quotes have recently seen a little increase followed by a slight decrease.
Although there is an offseason for bromine, the market remained buoyant as slowing activity in China and the restart of arbitrage with the European region kept new inquiries coming in.
However, the demand outlook deteriorated in the second half, and the European market lacked market competitiveness in the face of rising energy prices and inflation.
Furthermore, the arbitrage has declined in the latter part due to the impediment to transportation activities.
APAC
Overall, market sentiments in the Asia Pacific bromine market have been varied, depending on subregion. The Chinese players have reduced their run rates in order to comply with the norms and rules imposed by the Chinese authorities to limit power consumption.
Furthermore, the COVID situation in China has continued to impede arbitrage with the outside market.
As a result, the Bromine market continues on a bullish trajectory, followed by a slowing when the Bromine market enters a seasonal off-trend.
Middle East and Africa
The Middle East and Africa bromine market experienced a mixed outlook. The first half saw a significant upswing as the demand prognosis for Bromine strengthened after queries flooded the Jordan market in October and early November 2022.
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However, soon after, the European players collectively resolved to reduce the run rates in order to maintain netbacks. Because of the existing supply-demand dynamic and high energy costs, profit margins in several industries were negative.
Furthermore, the seasonal off-trend for bromine has begun, resulting in a drop in the offered quotations on the domestic market.
As per Procurement Resource, Neogen Chemicals Limited (Neogen), a major manufacturer of bromine-based and lithium-based specialty chemicals in India, signed a licence deal with MU Ionic Solutions Corporation (MUIS) in Japan.
The agreement states that Neogen will obtain a licence from MUIS for proprietary and confidential manufacturing technology in order to manufacture Neogen's electrolyte solutions at its manufacturing facility in India, which will have a maximum installed capacity of up to 30,000 MT per year, according to a press release. Neogen will focus on these electrolytes to meet the expanding demand for lithium-ion cell manufacturers in India.
