Shares of Neogen Chemicals rose nearly 7% in morning trade on April 10 after a report that the company may announce a technology transfer arrangement with a large Japanese conglomerate.

The company has reportedly scheduled a press conference for 3:30 pm, where an announcement about the arrangement may be made.

The stock reacted positively to the news, touching an intraday high of Rs 1,445. Shares of Neogen Chemicals were trading at Rs 1,433 on the National Stock Exchange at 12:18 am, up 6% from the previous close.

According to a report by ET-NOW, the arrangement will be used to manufacture lithium electrodes under the government’s Product-Linked Incentive (PLI) scheme. The company is also expected to provide detailed steps to manufacture electrolytes for lithium-ion batteries at its press conference.

The report also said the chemical company might manufacture lithium electrodes domestically for Ola Electric, Exide and Amaron.

The demand for lithium-ion batteries has been growing rapidly, not least due to the growing demand for electric vehicles. Most EV makers have been importing lithium-ion batteries to manufacture EVs for the domestic market. As such, the company’s investors welcomed news of Neogen’s foray into the space.