Que: What makes the NE51210EL stand out in the market, especially regarding its fast charging capabilities and lack of cooling requirements?

Ans: The NE51210EL battery pack from Neuron Energy stands out in the market for its exceptional fast charging capabilities and efficient thermal management design, which eliminates the need for active cooling systems.

Neuron Energy offers two types of battery packs: slow charging and fast charging models. The fast charging NE51200EL is designed to comply with GBD protocols type 6 and type 7, which are widely adopted fast charging standards used at charging stations. This compliance allows vehicles equipped with the NE51210EL to rapidly charge from 30% to 80% battery capacity within just one hour.

What truly sets the NE51200EL apart is its innovative thermal management approach. The battery pack's design features an optimised cell spacing layout, which , combined with its advanced battery management system (BMS) and charger algorithms, ensures efficient heat dissipation during the fast charging process. This unique design eliminates the need for additional active cooling systems, as the NE51210EL can safely charge from 30% to 80% at a 0.5C discharge rate without risking thermal runaway.

By addressing the common challenges of extended charging times and thermal management requirements, the NE51210EL battery pack offers a compelling solution for customers seeking fast and efficient charging capabilities without compromising on safety or performance.

Que: What were the primary challenges Neuron Energy faced in its initial stages, and how did you overcome them?

Ans: In the initial stages, Neuron Energy faced a primary challenge in terms of market acceptance for the pricing of its high-quality, long-lasting battery packs. As a company committed to delivering superior products designed to the highest industrial standards, Neuron Energy's battery packs were priced higher than many alternatives available in the market at that time.

Our approach involved using premium materials and advanced engineering to ensure its battery packs could last for at least 5 to 6 years, significantly longer than many competing products. However, this commitment to quality and longevity initially made it difficult for some consumers to appreciate the value proposition, as the market was more accustomed to lower-priced battery pack options.

To overcome this challenge, Neuron Energy focused on educating the market about the importance of safety, reliability, and long-term performance. As incidents involving fires and other safety concerns related to inferior battery packs became more prevalent, consumers became increasingly aware of the risks associated with compromising on quality.

This shift in market awareness played a crucial role in helping Neuron Energy gain acceptance for its premium battery pack offerings. Consumers began to understand the value proposition better, recognizing the importance of investing in high-quality, well-designed battery packs that prioritise safety and longevity over short-term cost savings.

Furthermore, as Neuron Energy scaled its operations and gained a stronger foothold in the market, it was able to optimise its processes and achieve economies of scale, allowing the company to offer its superior battery packs at more competitive prices without compromising on quality.

Today, Neuron Energy has successfully overcome the initial pricing hurdle, with consumers becoming increasingly educated about the benefits of investing in reliable and safe battery pack solutions from a trusted and experienced manufacturer.

Que: What are the specific challenges in designing battery packs for non-traditional EV applications like drones and how is Neuron addressing these?

Ans: Designing battery packs for non-traditional EV applications like drones presents unique challenges, and Neuron Energy is addressing these challenges through innovative solutions tailored to the specific requirements of these applications.

One of the critical challenges in designing battery packs for drones is weight optimization. Unlike traditional electric vehicles, drones have stringent weight limitations, as every gram counts in achieving optimal flight performance. As such, Neuron Energy's approach involves meticulously selecting lightweight materials and optimizing the pack design to minimize weight without compromising on performance or safety.

Another significant challenge lies in the need for high discharge rates. Drones often require burst discharge currents ranging from 10C to 20C, which places exceptional demands on the battery pack's capabilities. To address this challenge, Neuron Energy employs advanced cell chemistry and pack architecture, ensuring that the battery packs can deliver the required high discharge rates while maintaining stability and longevity.

Furthermore, Neuron Energy's design process for drone battery packs involves rigorous testing and validation to ensure compliance with industry standards and regulatory requirements specific to the aviation industry. This attention to detail ensures that the battery packs not only meet performance expectations but also adhere to the highest safety standards.

By combining lightweight materials, optimized pack designs, and advanced cell chemistry, Neuron Energy is able to deliver battery pack solutions that meet the unique demands of drone applications. These solutions provide the necessary power density, high discharge rates, and extended cycle life, enabling drones to achieve longer flight times, improved payload capacity, and enhanced overall performance.

Neuron Energy's commitment to innovation and its expertise in tailoring battery pack solutions to specific application requirements position the company as a leading provider of cutting-edge solutions for the rapidly evolving drone and UAV market.

Que: Discuss the partnership with Urja Mobility. What synergies do you foresee, and how does this partnership enhance Neuron Energy’s offerings?

Ans: The partnership between Neuron Energy and Urja Mobility represents a strategic alliance that leverages the strengths of both companies, creating synergies that enhance Neuron Energy's offerings and reach in the electric mobility market.

This partnership encompasses two distinct offerings: one targeting the B2B segment and another focused on the B2C market.

B2B Offering: In the B2B domain, the partnership enables Neuron Energy to cater to fleet manufacturers and fleet owners who require battery solutions for their electric vehicles. Through this collaboration, Urja Mobility provides financing options, allowing these businesses to acquire Neuron Energy's advanced battery packs with flexible payment terms. This synergy addresses the capital requirements of fleet operators, facilitating the adoption of Neuron Energy's high-quality battery solutions.

B2C Offering: On the B2C front, the partnership with Urja Mobility opens up new avenues for Neuron Energy to reach individual customers seeking to transition from lead-acid batteries to lithium-ion battery solutions. Leveraging Urja Mobility's extensive network and customer outreach, Neuron Energy can introduce its innovative battery packs to a broader consumer base, enabling them to experience the benefits of superior energy storage solutions.

By combining Neuron Energy's cutting-edge battery technology with Urja Mobility's financing capabilities and customer reach, this partnership unlocks several key advantages:

i. Increased Accessibility: The financing options provided by Urja Mobility make Neuron Energy's advanced battery solutions more accessible to a wider range of customers, both in the B2B and B2C segments.

ii. Market Expansion: The collaboration opens up new market opportunities for Neuron Energy, allowing the company to reach a larger customer base and expand its footprint in the electric mobility sector.

iii. Accelerated Adoption: By addressing financial barriers and offering innovative battery solutions, the partnership facilitates the accelerated adoption of electric vehicles and the transition towards sustainable mobility.

iv. Synergistic Expertise: Neuron Energy's technical expertise in battery technology complements Urja Mobility's strengths in financing and customer outreach, creating a powerful synergy that delivers comprehensive solutions to the market.

Through this strategic partnership, Neuron Energy can leverage the synergies with Urja Mobility to enhance its offerings, reach new customer segments, and drive the adoption of sustainable energy storage solutions in the rapidly evolving electric mobility landscape.

Que: You have recently expanded your distribution network in West Bengal. What was the strategy behind choosing this region and what role do these new distributors play in Neuron Energy’s growth strategy, particularly in the context of battery leasing?

Ans: Neuron Energy's recent expansion of its distribution network in West Bengal aligns with a strategic vision focused on capitalizing on the region's burgeoning electric vehicle market, particularly in the context of battery leasing for last-mile transportation solutions.

West Bengal has historically been a market that has embraced alternative modes of transportation, such as pedal rickshaws and toto (three-wheeled rickshaws). Over the past 8 to 10 years, there has been a significant shift towards the adoption of e-rickshaws, which have gained widespread popularity across the state.

Notably, regions like Murshidabad have emerged as hotspots for e-rickshaw sales, with a high density of these electric vehicles on the roads. This surge in adoption has led to increased demand for reliable and efficient battery solutions, creating an ideal opportunity for Neuron Energy to establish a strong presence in the market.

By expanding its distribution network in West Bengal, Neuron Energy aims to leverage the growing demand for battery leasing solutions in the last-mile transportation sector. The new distributors play a crucial role in Neuron Energy's growth strategy by facilitating the leasing of their advanced battery packs to e-rickshaw operators and fleet owners.

The battery leasing model offers several advantages for both Neuron Energy and its customers:

• Increased accessibility: By leasing batteries, e-rickshaw operators and fleet owners can access Neuron Energy's high-quality battery solutions without the need for a significant upfront investment, reducing financial barriers to entry.

• Operational efficiency: Neuron Energy's battery packs are designed for high performance and longevity, ensuring reliable and efficient operations for e-rickshaw fleets, ultimately leading to increased productivity and profitability.

• Lifecycle management: Through the leasing model, Neuron Energy can effectively manage the lifecycle of its battery packs, ensuring timely replacements and maintenance, reducing downtime for customers.

• Market penetration: By establishing a strong distribution network in West Bengal, Neuron Energy can expand its reach and gain a significant foothold in the region's rapidly growing electric mobility market.

The strategic choice of West Bengal as a focus region for distribution network expansion aligns with Neuron Energy's commitment to delivering innovative and sustainable energy storage solutions to markets where the demand for electric mobility is on the rise. By partnering with local distributors and leveraging the battery leasing model, Neuron Energy is well-positioned to drive the adoption of its cutting-edge battery technology in the last-mile transportation sector, contributing to the region's transition towards a cleaner and more efficient mobility ecosystem.

Que: How has the recent funding of INR 20 million impacted Neuron Energy's operations and growth plans and mention any long-term goals of Neuron Energy, and where do you see the company in the next five years?

Ans: The funding of INR 20 million raised last year in June 2023 served as a catalyst for Neuron Energy's growth strategy and operations, propelling the company forward on an ambitious trajectory. This capital infusion played a pivotal role in accelerating Neuron Energy's expansion plans and solidifying its position in the rapidly evolving electric mobility landscape.

Immediately following the 2023 funding, Neuron Energy witnessed a remarkable surge in its operations, scaling from a company with a revenue of INR 30 crores to one generating INR 70 crores. This significant growth can be attributed to the strategic deployment of the funds, enabling Neuron Energy to bolster its production capabilities, enhance research and development initiatives, and strengthen its distribution channels.

Building on this momentum, Neuron Energy is poised to achieve even greater milestones. We are currently in the process of securing an additional funding round, scheduled to close in June 2024. This influx of capital will further fuel Neuron Energy's ambitious growth plans, positioning the company to target an impressive revenue of INR 500 crores within the next three years.

In the next five years, Neuron Energy envisions itself as a globally recognized brand, renowned for its innovative spirit, customer-centric approach, and unwavering commitment to sustainability. With a robust financial foundation, a talented workforce, and a steadfast focus on research and development, Neuron Energy is poised to redefine the boundaries of what is possible in the world of electric mobility and energy storage solutions.