Neogen Chemicals (NSE:NEOGEN) said its wholly owned subsidiary Neogen Ionics has executed a joint venture agreement with Morita Investment, a unit of Japan's Morita Chemical Industries, to manufacture materials used in lithium-ion batteries, according to an Indian bourse filing on Sunday.

Shares of Neogen Chemicals rose nearly 4% in recent trade.

Under the agreement, both companies will invest in Neogen Morita New Materials, a subsidiary of Neogen Ionics, which will produce, develop, and sell solid LiPF6 salt and related products.

Neogen Ionics will hold at least 80% of the venture's share capital, with Morita Investment owning up to 20%, the filing said.

The amount of investment will be finalized after a detailed engineering exercise, it added.