Neuron Energy to invest more in lithium-ion battery pack business.

Neuron Energy, which manufactures lithium-ion for electric 2-wheelers and 3-wheelers in India,recently said it plans to invest ₹50 crore in the Li-Ion battery pack segment.

“The investment will be split between ₹35 crore of working capital financing and ₹15 crore of equity from promoters and strategic partners. This move by the company is to cater to the increasing demand in their order book,” Neuron Energy said in a statement.

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 rising eco-consciousness among consumers. Neuron also has plans for backward integration into stocking raw materials and handling production along with a contract manufacturer in the near future, it added.

Besides increasing capacity, 40 percent 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, the company said.

Among the advantages of Neuron’s Li-ion battery product line are the microprocessor-based battery management system (BMS), the 4 temperature sensors, the appropriate cell spacing for thermal management and the Neuron App for remote assistance.

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.

HBL