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Indian Oil, Panasonic Energy partner for lithium-ion cells plant in India
Both companies have signed a binding agreement, and financial details of this collaboration will be revealed by the end of the summer
Indian Oil Corporation Ltd (IOCL) has partnered with Panasonic Energy Corporation to manufacture cylindrical lithium-ion cells in India, the companies said.
In January, the Indian energy giant signed a memorandum of understanding (MoU) with the Japanese electronics firm to explore the potential establishment of a joint venture dedicated to advanced cell manufacturing for lithium-ion batteries.
The joint venture will leverage the Panasonic subsidiary’s expertise in battery development and manufacturing, considering the anticipated demand for batteries for two- and three-wheel vehicles and energy storage systems in the Indian market.
Both companies have signed a binding agreement, and financial details of this collaboration will be released by the end of the summer, the companies said in a statement.
India has launched a production-linked incentive scheme—the National Program on Advanced Chemistry Cell (ACC) Battery Storage—with a budgetary outlay of ₹18,100 crore ($2.17 billion).
Indian ACC battery storage program aims to achieve a 30 GWh capacity, which will lead to accelerated electric vehicle adoption and result in net savings of ₹2,00,000-2,50,000 crore ($239.8-299.8 billion), attributed to a reduction in the oil import bill during the program period.
With this joint venture, both companies will set up local manufacturing to fulfill domestic requirements and complete the supply chain ecosystem.
This JV will lead to demand creation 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, the companies said.
Indian Oil, a Fortune 500 company that boasts 31,000 employees, is in all the streams of oil, gas, petrochemicals, and alternative energy sources., and has ventured into several countries, including Sri Lanka, Mauritius, and the UAE.
Panasonic Energy was set up in April 2022 as a multinational group involved in the process of providing innovative battery technology-based products and solutions globally.
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