Indian Oil Corporation and Panasonic Energy Co have signed a binding term sheet to establish a joint venture to manufacture cylindrical lithium-ion cells in India in anticipation of rising demand for batteries for two- and three-wheel vehicles, as well as energy storage systems in the Indian market.
This signing of the binding term sheet comes shortly after the signing of the Heads of Agreement on January 21, 2024 in New Delhi. The two businesses are conducting a feasibility study on the use of battery technology to ease India’s transition to sustainable energy, with the goal of finalising the terms of their partnership by summer of this year. Indian Oil would utilise Panasonic Energy’s experience in battery development and manufacture.
In addition to meeting domestic requirements, investments in setting up local manufacturing will set up a complete supply chain ecosystem improving India’s self-reliance, fortifying India’s position in the global energy landscape. This will also lead to creating demand for raw material sourcing within the country, enhancing domestic value addition, encourage the entry of new market participants and the growth of India’s battery industry in terms of highly efficient cell technology.
Indian Oil is aiming to achieve its net-zero operational emissions target by 2046, aligning with the India’s goal to achieve carbon neutrality for the country by 2070. In recent years, Indian Oil has actively engaged in the development of clean energy sources, including the utilization of solar power, biofuels and hydrogen.
Indian Oil aims to address environmental challenges, such as reducing CO2 emissions, through its partnership with Panasonic Energy. Leveraging Panasonic Energy’s expertise in battery development and manufacturing, both companies will strive to contribute to the growth of the lithium-ion battery industry and to India’s energy transition, while pursuing its mission of helping to build a sustainable society.