Neogen Chemicals Ltd

Introduction with Focus on

Lithium Derivatives

www.neogenchem.com
Neogen Chemicals – At a Glance
2

Leading manufacturer of Bromine and Lithium-based specialty

chemicals, operating since 1991 listed in BSE & NSE since 2019

Strong portfolio of Organic and Inorganic products Products developed Customers

by in-house R&D

Promoters are Chemical Engineer from IIT Bombay,

pioneering technocrats with substantial domain expertise;

Customers across multiple industries including Pharma,

Engineering ,Agrochem, Aroma, Paints Exporting countries

Key export geographies include USA, Europe, Japan and

Middle East

Growing contribution from Custom Synthesis and Contract

Manufacturing Manufacturing units certified on Quality & SHE
management systems
Workforce of 392 employees, many team member having >20
years of experience in Neogen

Developed strong R&D capabilities with dedicated in-house

team
Employees Of workforce in R&D
 Key Milestones
3

Leading manufacturer of Bromine and Lithium-based specialty chemicals since 1989

1989 1991 1994 1998 2000 2001 2007 2012 2016 2017 2019 2020 2021

Started Conversion to Started Increased

operations public limited manufacturin reactor Commenced Increased the
with Lithium company g speciality capacity at manufacturing capacity for
salts and bromine Mahape to Achieved operations at Inorganic
organic compounds 45,000 litres turnover of Vadodara Chemicals
bromide at for advanced ₹100 crore Facility from 1,200
Incorporation Mahape Increased in Dedicated intermediates Increased MT to 2,400
Raised Rs. 132
as a private capacity from R&D Division reactor Acquired MT through
Increased crore through
limited 1,600 litres to set up capacity at manufacturing Greenfield
reactor initial public
company to 6,000 litres at Mahape to operations expansion at
capacity of offering (IPO)
scale up Mahape 30,000 litres along with Dahej, Gujarat
Mahape and Offer for
existing 39.6 acres of
facility from sake
bromine land from
6,000 litres to Started Organic
derivatives Solaris
20,000 litres facility MPP3 with
business Chemtech
250 m3 capacity
Limited at
through brownfield
Karakhadi,
expansion at Dahej,
Vadodara
Gujarat with US$ 20
Mn investment
 Business Overview
4

Organic Chemicals Inorganic Chemicals

The portfolio includes specialty, inorganic

Custom Synthesis & lithium-based chemical products which
Bromine Compounds
Advanced Intermediates Manufacturing find applications across multiple industries
Organic compounds containing
Combining bromination with other Products developed for specific
chlorine, fluorine, iodine-based
chemistries to create forward- customers. Process know-how and
combinations thereof and others
integrated value-added products technical specifications are
including grignard reagents End User Industries
developed in-house

Eco-friendly VAM for cooling

End User Industries
air/water/process equipment

Pharmaceuticals Specialty Polymers

Pharmaceuticals Agrochemicals
Concrete
Photography /
Admixture /
Electronic Chemicals Molecular Sieve
Lubrication
Aroma Chemicals Flavours Battery Corrosion
Application Protection Agent
Clientele
Select
Process Capabilities
5

Can also combine these with:

❖ alkylation,
❖ amination,
❖ oxidation
❖ dehalogenation
❖ silylation
❖ grignard reaction
❖ anhydrous HF & HBr reactions
❖ halex reaction
❖ suzuki coupling
❖ hydrogenation
❖ biocatalysis (R&D)
Others as per your need
 Sales Summary 6

Sector Wise Sales Sales Growth in USD million

10% 3%

Dahej SEZ MPP

19%

68% New Plant in Baroda

Third Expansion
First
Second Expansion
Expansion

Pharma Agro Engineering Others

FY03

FY07

FY13

FY17

FY19

FY21

FY22P

FY24P
FY 22 – FY 24 revenue are Estimated revenue based on 20 mn Investment done in last two years in Dahej
Multi-locational Presence
7

Rann of Kutch, Gujarat

• Major source of Bromine
supply

India

Karakhadi, Vadodara, Gujarat

Bolivia • Manufacturing facility for Organic
Source of Chile Chemicals
Lithium Argentina
• R&D unit Thane, Maharashtra
supply
• Corporate Office
Dahej SEZ, Gujarat J.N Port
• Newly commissioned Greenfield manufacturing facility All the manufacturing facilities are close to
for Inorganic Chemicals JN Port. For Exports, shipments happen from
• Newly commissioned facility for Organic Chemicals) this port

Mahape, Navi Mumbai, Maharashtra

• Manufacturing facility of Organic and
Inorganic Chemicals
• R&D unit
Robust manufacturing expertise
8

Strong Manufacturing Infrastructure –

Factory Land Area Land Utilisation Capacity

1,200 MTA (Lithium)
Mahape (Since 1991) 1.0 acres 100%
45,000 Litres (Organic)
Vadodara (Since 2017) 40 acres 20% 85,400 Litres (Organic)
1,200 MTA (Lithium)
Dahej (Since 2020-21) 12 acres 20%
250,000 Lit. (Organic)

Quality Control and Quality Assurance

o Dedicated QC and QA team in place monitoring the entire manufacturing process at all stages
right from initial testing stage to the final product

Certifications of Manufacturing Facilities

o Mahape Facility - ISO 9001:2015 from Bureau Veritas Certification Holding SAS
o Vadodara Facility – ISO 9001:2015, ISO 14001:2015 and OSHAS 18001:2007 certifications from
Bureau Veritas Certification Holding SAS
o Implemented current good manufacturing practice (cGMP) prescribed by the US FDA as
applicable for intermediates
Vadodara Site Overview
9

40 acres of land, of which only 10-15% used currently, rest available for future expansion
Dedicated Plant for Lithium Derivative (2020)
10
Current Development Status (2021)
11
 Dahej Site Layout 12

MPP3 Under Operation Since April 2021

Solvent Recovery plant (u/c)

Waste Treatment Facility (ZLD)

MPP1 Lithium salts Under Operation Since

March 2020
Utility Block

Hydrogenation Block (u/c)

 Neogen’s Experience in Lithium Chemistry

www.neogenchem.com
Neogen Lithium Business Overview
14

o Industry First Mover

• First company to commercially produce Lithium Bromide / Lithium Chloride for various application (since 1985)
• First exporter of Lithium Derivatives to Europe, USA, middle East, Japan (since 1998), with exports to >28 countries
o Market Leader
• One of the Largest consumer of Lithium Carbonate in India
• Having almost >75% market share of specialty lithium derivatives in India (excluding Lithium Greases)
o Supply Security
• Largest importer of Lithium Carbonate in India from World’s top two producer with very old relationship
• Additionally connected with 3 other lithium suppliers world wide as a back up source
• Can enter into formula based / multi year contracts with Lithium majors to secure supply and price clarity
o Quality
• Can control impurity from PPM to PPB levels
• Long history of consistent supplies of 1000s of MT without single customer complain
o Recycling Capability
• Can recycle / reuse / reprocess Lithium based products to make fresh products with same level of quality since last 25 years
Lithium Derivatives 15

Commercialized Lithium Salts Under Development

➢ Lithium Bromide Anhydrous - (LiBr) ➢ Cathode Material
➢ Lithium Bromide Solution - (LiBr) ➢ LFP – Lithium Iron Phosphate
➢ Lithium Chloride Anhydrous - (LiCl)

➢ Lithium Chloride Anhydrous - (LiCl) Battery Grade

➢ Electrolyte Salt and Formulations
➢ Lithium Chloride Solution - (LiCl)
➢ Lithium hexafluoro Phosphate (LiPF6) Salt Production
➢ Lithium Fluoride - (LiF)
➢ Electrolyte containing LiPF6, made as per customer requested
➢ Lithium Fluoride - (LiF) Battery Grade compositions

➢ Lithium Nitrate Monohydrate - (LiNO3.H2O)

➢ Lithium Nitrate Solution - (LiNO3) ➢ Additives for Electrolytes

➢ Lithium Sulphate Anhydrous - (Li2SO4) ➢ LiFSI - Lithium bis(fluorosulfonyl)imide - (LiNO4S2F2)
➢ Lithium iodide trihydrate - (LiI.3H2O) ➢ Other proprietary salts on customer request
➢ Lithium Acetate dihydrate - (CH3COOLi. 2H2O)

➢ Lithium Oxalate – (Li2C2O4) ➢ Recycling Solutions from Cell Manufacturing waste

➢ Lithium Citrate tetrahydrate - (C6H13Li3O11.4H2O)

➢ Lithium Chromate Solution 20% - (Li2CrO4) ➢ NMC, other Cathode material – considered under tolling/tech
➢ Lithium Molybdate Solution 20% - (Li2MoO4) transfer mode
Engineering Use case: Lithium Bromide Solution
16

o Manufacturing Lithium bromide solution for 30 years.

o Capacity ~ 3000 MT/year

o Production ~1200 MT/year

o Impurity control of >10 elements from ppm levels to ppb levels

o Initially developed matching Customer Technology provider Specs in 1985, but optimized for India specific
composition to reduce cost / improve performance for India on a continuous basis with Indian OEMs

o OEM supplier of Lithium bromide solution for Indian Vapour Absorption Machine manufacturers namely
Thermax, Voltas & Kirloskar - For last 3 Decades we supply 100% OEM requirements for their India business

o We also exporting Lithium bromide solution / powder to:

➢ China , Europe , Japan , Middle East

Lithium Recycling Capability
17

o We can recycle / reuse / reprocess Lithium Base products to make same level of Fresh products quality

o Achieve high level of purity for recovered lithium material

o Control on impurities up to ppm and ppb level

o Recycling experience since 25 years on commercial level

o Can work with different source materials

• Lithium Waste from Cell manufacturing

• Lithium from Battery End of Life

o End of use of Lithium Depending on purity so as to maximize lithium value

• depending on purity to make battery materials such as electrolyte salts

• to make non-battery application product with lower stringency end use to maximise value of lithium
 Neogen’s Initiatives in LIB Business 18

o Neogen has started communicating with Cell manufacturers to understand their Electrolytes demand. Many have shown interest to
source from Neogen and are willing to share the Electrolyte Formulation under Secrecy Agreement.

o Received Management approval and finalizing design plans for kilo-pilot stage LiPF6 Electrolyte production –
o 10,000 kg per annum capacity to be made operational by Dec 2021 at Vadodara
o 100,000 kg per annum capacity (approx. 0.2 GWh) to be made operational by June 2022 at Vadodara,
o Proposed expansion of above to 2,000,000 kg - 4,000,000 kg per annum capacity by 2023

o For Cathode material, chemical synthesis of LFP (which was identified as priority material) in lab is achieved matching chemical
purities, now working on material characteristics needed for battery and improvement for India conditions.

o Other Cathode Materials: Neogen can partner / toll manufacturer for a specific cathode material as per technology of international
company to help support local manufacturing and localization requirement

o In parallel, also working on next generation electrolyte additive manufacturing for international markets and to evaluate its cost-
benefit for Indian conditions
 Other Cathode Material – Custom Synthesis
19

o Neogen is currently working with Pharma and Agro international innovator companies custom manufacturing
multistage product at its Karakhadi and Dahej sites.

o Backed-up by strong in house expertise in Process Development/Engineering and State of Art Manufacturing Units,
Neogen is uniquely positioned to offer end to end services starting from R&D, Process Scale-Up and finally
Commercial Scale Manufacturing.

o Neogen can work with Global cathode companies to make the cathode material as per their technology in India

o This will ensure development of local and sustainable value chain of products with following features:

• Manage Lithium sourcing

• Lesser logistical constraints with local supply from Gujarat plant

• Customization of specs / packing etc as per customer requirement

• Achieve higher localization needed for PLI scheme for ACC manufacturer
 Electrolyte Details

www.neogenchem.com
Cell Components and Materials
21
Approximate Cost Breakdown
22

Approximate Cost Component Break Up*

*Based on literature as an example, actual % will vary

Electrolytes Salts / Additives Comparison
23

Electrolyte o Merits o Dimerits

LiPF6 shows great advantages in ion conductivity,

solubility. And more importantly, the decomposition of
LiPf6 LiPF6 can produce HF to form AlF3 to provide a LiPF6 have the worst thermal stability.
protective passivation film on aluminium current
collector.

LiBOB LiBOB is generally considered to have a high thermal Its solubility in carbonates solvents is low.
stability.

Using as electrolyte additive to improve coulombic

efficiency, controls the formation of the SEI (Solid
LiPO2F2 Electronic Interphase) layer, improve charge-discharge
cycle lifetime, reduce impedance growth and inhibit Li
dendrite growth

It cannot passivate the aluminum current

LiFSi Exhibit extremely high thermal stability and suitable collector.
ionic conductivity,
Impact of LiFSi on Capacity Retention & Bulging
24
Electrolyte Solvents Comparison
25
 26
Major Cost Components of electrolyte
o Lithium Source (Carbonate / Hydroxide)
• Price variability depends on scale, type of salt, Long term contract Vs. market volatility
• Source: Imported to begin with, over period depending on recycling abilities can be partly sourced locally
o Manufacturing and other RMs
• Depends on scale, chemistry and market price of Lithium and other RM involved
• Most of this cost will be incurred or based on material sourced in India
o Specialty Solvents
• Depends on types of solvents, scale of consumption
• Imported source – over time if demand increases >10,000 MT per annum could be made in India
o Additives
• Depends on quantity / nature of additives used, Customized
• Imported or manufactured in India depending on type
LFP: Cathode Material

www.neogenchem.com
 28
Preparation of LiFePO4 (cathode material) Battery grade

e- e-
Power

Li+ Li+ Li+

Li+ Li+ Li+

Li+ Li+

Anode Charging/ lithium-ion Cathode

insertion
Discharging/lithium-ion
deinsertion
Angew. Chem. Int. Ed. 2008, 47, 7461 –7465
 29
Preparation of LiFePO4 – Synthesis Scheme Evaluated
S. No Product Remarks and Expected specifications
Scheme 1 Carbon coated LiFePO4 1) We may get nanocrystalline grains with well carbon coated LiFePO4 particles
2) Good specific surface area.
3) Good Conductivity

Scheme 2 LiFePO4/Carbon Nanocomposite with a 1) In situ polymerization reaction can restrict the size of LiFePO4 and we get nano size particles (<50
Core–Shell nm).
2) Carbon Nanocomposite with a Core–Shell enhances the electron and Li+ interactions in all
directions.
3) This is the ideal structure for high-performance LiFePO4 should contain nano-size particles
completely coated with conductive carbon
 Lithium - Price Variability

www.neogenchem.com
Lithium World Production over last 100 years
31
Lithium Carbonate Variation over 15 years (before EV)
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Lithium Carbonate Variation – EV Impact
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https://www.europeanmet.com/wp-content/uploads/2017/04/image1-2.png
Lithium Carbonate Price Variation - More Recent
34

https://www.mining.com/lithium-price-in-china-surges-40-to-18-month-high/
Summary – Way Forward
35

o Cell manufacturers are interested in knowledge partners for materials who can be long term reliable partners
o Neogen with its long experience in Lithium salts and its formulation in Engineering industry is focusing on:
• Electrolyte salt manufacturing,
• Customized Electrolytes
• LFP Cathode material
o Each Cell manufacturer or its technology partner has different/proprietary Electrolyte Formulation – so same has to
be customized as per customer’s chosen technology / chemistry
o Neogen can utilize its experience in Recycling of Lithium and non-battery lithium applications to find optimum
value of Lithium waste from battery
o Neogen can utilize its experience in Contract Manufacturing in Pharma & Agro innovators in Europe/Japan/USA
to develop Other Cathode materials such as NMC - under CSM/Tech transfer model
o Once initial plant is set up Neogen can partner long term to optimize the chemistry for meeting India specific
optimization and components for future generation of lithium cell chemistries
o Neogen can further value add to bring its existing relationship with lithium manufacturers to manage lithium
supply chain and help meet PLI scheme localization targets
Summary – Requirements from Customer
36

o Projections of approximate volume requirements over 5 years (Best case / worst case / base case)

o Quality / Composition / Packing of the material needed

o Expected composition of the waste from cell manufacturing plant to start recycle development work

o Clarity on Basic Framework of Long Term Supply Agreement (which can be signed with Neogen) – to accordingly
secure lithium and commit/plan other resources like production assets.
 37

Navin Jha
GM Marketing
[email protected]
Cell: ++91-96194 96469

Pikin Jain
VP Business Development
[email protected]
Cell: ++91-86575 66012

Dr. Harin Kanani

Managing Director
[email protected]
Cell: ++91-98335 61987