Neuron Energy, a Mumbai-headquartered manufacturer of lithium-ion battery packs for electric two- and three-wheelers in India, plans to invest INR 50 crore ($6 million) in the Li-Ion battery pack segment. The investment will be split between INR 35 crore of working capital financing and INR 15 crore of equity from the promoters and strategic partners.
“This move is to cater to the increasing demand in [our] order book. The increasing 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,” stated Neuron.
Neuron also plans for backward integration into stocking raw materials and handling production along with a contract manufacturer in the near future.
Currently, Neuron has a production capacity of 6,000 battery packs per month through its contract manufacturer, which it plans to double by January end.
Besides increasing capacity, 40% of the investment will be used to fulfil orders from large OEMs, stated Neuron.
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