Indian Oil and Panasonic Energy to partner for Lithium-ion cell manufacturing in India

Indian Oil Corporation Limited (Indian Oil) and a battery technology-based startup under the Panasonic Group, Panasonic Energy Co. Ltd., have entered into a binding term sheet to establish a joint venture for manufacturing cylindrical lithium-ion cells in India. The aim is to cater to the growing demand for batteries for two- and three-wheel vehicles and energy storage systems in the Indian market. This agreement follows the signing of a Heads of Agreement in January 2024. The two companies are conducting a feasibility study on battery technology utilization to facilitate India’s transition to clean energy. The collaboration aims to be finalized by the summer of this year.

The term sheet was signed in the presence of Mr. Shrikant Madhav Vaidya, Chairman, IndianOil and Mr. Kazuo Tadanobu, President & CEO, Panasonic Energy Co. Ltd. Through its partnership with Panasonic Energy, IndianOil aims to address environmental challenges such as reducing CO2 emissions. Leveraging Panasonic Energy’s expertise in battery development and manufacturing, both companies seek to contribute to the growth of the lithium-ion battery industry and India’s energy transition, for building a sustainable society.

Investments in local manufacturing are expected to strengthen India’s self-reliance in the energy sector and global standing. This initiative is expected to generate demand for domestic raw materials, boost local value addition, attract new market participants, and promote growth in the Indian battery industry, as claimed by the company statement. India’s 1.4 billion population signals its economic potential, as the world’s third-largest GDP. IndianOil is working towards achieving net-zero operational emissions by 2046, aligning with India’s target of carbon neutrality by 2070. The company is actively engaged in developing clean energy solutions such as solar power, biofuels, and hydrogen, as stated in their official statement.

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