IndianOil and Panasonic Energy to form joint venture to produce lithium-ion batteries in India

IndianOil and Panasonic Energy, a unit of Panasonic Group, have signed a binding term sheet to formulate a framework for forming a joint venture to produce cylindrical lithium-ion batteries in India to cope with the expanding demand for batteries for two-and three-wheel vehicles and energy storage systems in the Indian market.

The binding term sheet was signed shortly after the two companies signed a framework agreement in New Delhi on January 21, 2024. The two companies are conducting a feasibility study on using battery technology to facilitate India's transition to clean energy and aim to finalize details of the collaboration by this summer.

In addition to meeting domestic demand, investing in setting up local manufacturing will build a complete supply chain ecosystem, increase India's self-reliance and strengthen India's position in the global energy landscape. This will also create domestic demand for raw material procurement, increase domestic value addition, encourage entry of new market players and growth of the Indian battery industry in terms of high-efficiency battery technology.

India, with a population of 1.4 billion, is expected to become the world's third-largest economy by gross domestic product (GDP), underscoring its market potential. IndianOil aims to achieve a net-zero operational emissions target by 2046, in line with India's goal of becoming carbon neutral by 2070. In recent years, IndianOil has been actively committed to the development of clean energy, including the use of solar energy, biofuels and hydrogen.

IndianOil aims to address environmental challenges such as reducing carbon dioxide emissions through its partnership with Panasonic Energy Company. The two companies will leverage Panasonic Energy's expertise in battery development and manufacturing to strive to contribute to the growth of the lithium-ion battery industry and India's energy transition, while fulfilling their mission of helping build a sustainable society.