Indian Oil Corporation Limited (“IndianOil”) and Panasonic Energy Co. Ltd., have signed a binding term sheet to draw a framework for formation of a JV for manufacturing cylindrical lithium-ion cells in India in anticipation of expanding demand for batteries for two-and three-wheel vehicles and energy storage systems in the Indian market. The JV will focus on the development of advanced lithium-ion batteries for EVs, as well as unveiling new innovative battery technologies in the coming years.
This signing of binding term sheet follows soon after the signing of a Heads of Agreement on 21st January 2024 at New Delhi by the two companies. The two companies are engaged in a feasibility study regarding the utilization of battery technology to facilitate the transition to clean energy in India. They aim to finalize details of their collaboration by the summer of this year.
In addition to meeting domestic requirements, investments in setting up local manufacturing will establish a complete supply chain ecosystem. This will improve India’s self-reliance and fortify India’s position in the global energy landscape. This will also lead to creating demand for raw material sourcing within the country. It will enhance domestic value addition and encourage the entry of new market participants. Additionally, it will foster the growth of India’s battery industry in terms of highly efficient cell technology.
India, with a population of 1.4 billion, demonstrates significant market potential, projected to rank as the world’s third-largest GDP economy. IndianOil is aiming to achieve its net-zero operational emissions target by 2046. This aligns with India’s goal to achieve carbon neutrality for the country by 2070. In recent years, IndianOil has actively engaged in the development of clean energy sources. These include the utilization of solar power, biofuels, and hydrogen.
IndianOil aims to address environmental challenges, such as reducing CO2 emissions, through its partnership with Panasonic Energy. Both companies will strive to contribute to the growth of the lithium-ion battery industry and to India’s energy transition. Leveraging Panasonic Energy’s expertise in battery development and manufacturing, they pursue their mission of helping to build a sustainable society.
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