Neuron Energy Pvt Ltd, a manufacturer of lithium-ion for electric 2W and 3W in India, plans to invest Rs.50 crore in the Li-Ion battery pack segment.
The investment will be split between Rs.35 crore of working capital financing and Rs.15 crore of equity from the promoters and strategic partners. This move by the company is to cater to the increasing demand in their order book. The increase in demand for Li-Ion batteries is a testament to the fact that there is a substantial increase in demand for electric mobility owing to the rising eco-consciousness among consumers.
Besides increasing capacity, 40 per cent of the investment will be used to fulfil orders from large OEMs. As part of their growth strategy, the company intends to focus on the battery pack business. The investment is also expected to increase cash flow considering Neuron has always been a profitable company.
Neuron also has plans for backward integration into stocking raw materials and handling production along with a contract manufacturer in the near future.
Advantages
Among the advantages of Neuron’s Li-ion battery product line are the microprocessor-based BMS, the 4-temperature sensors, the appropriate cell spacing for thermal management, and the Neuron App for remote assistance.
Also read: Toshiba Launches 20Ah-HP SCiB Lithium-Ion Rechargeable Battery Cell
Future plans
The depot network is expected to remain the same for the next six months in Mumbai, Delhi, Chennai, and Kolkata. In the near future, Neuron may venture into battery research for deep technology as a result of the increase in its R&D team. As part of its expansion plans, Neuron has planned to construct a mega-plant by 2025 that will serve the EV2W and EV3W segments.
