State-owned Indian Oil Corporation Ltd (IOCL) and Panasonic Group Company Panasonic Energy announced that the two companies will form a joint venture for manufacturing cylindrical lithium-ion cells in the country.
“The JV was formed in anticipation of expanding demand for batteries for two-and three-wheel vehicles and energy storage systems in the Indian market,” IOCL said in a statement.
The two companies signed a binding term sheet to draw a framework for the formation of the joint venture which follows the signing of a Heads of Agreement on January 21, 2024 at New Delhi by IOCL and Panasonic Energy.
“The two companies are engaged in a feasibility study regarding the utilization of battery technology to facilitate the transition to clean energy in India, with the aim of finalizing details of their collaboration by the summer of this year,” IOCL said.
The company further stated that while meeting the domestic requirements, investments in setting up local manufacturing will set up a complete supply chain ecosystem improving India’s self-reliance.
The move will also lead to creating demand for raw material sourcing within the country, enhancing domestic value addition, encouraging the entry of new market participants and the growth of India’s battery industry in terms of highly efficient cell technology, it said.