Indian Oil Corporation Ltd. (IOCL), a state-owned entity, and Panasonic Energy, a Panasonic Group Company, jointly announced on Sunday, March 31st, that they have formalized a binding term sheet to establish a framework for the creation of a joint venture (JV) focused on the manufacturing of cylindrical lithium-ion cells within India.
This strategic move by IOCL comes in response to the escalating demand for batteries, particularly for two and three-wheeled vehicles, as well as energy storage systems within the Indian market. The agreement to establish this JV builds upon a previous milestone achieved by the two companies, marked by the signing of a Heads of Agreement on January 21st, 2024, in New Delhi.
Currently, Indian Oil and Panasonic Energy are actively involved in a comprehensive feasibility study aimed at leveraging battery technology to facilitate the nation’s transition to cleaner energy sources. The collaboration aims to finalize the operational details of their partnership by the summer of the current year.
Indian Oil emphasized that apart from catering to domestic needs, the establishment of local manufacturing facilities will catalyze the development of a comprehensive supply chain ecosystem, thereby bolstering India’s self-reliance and reinforcing its standing within the global energy sector. Furthermore, this initiative is expected to stimulate the demand for raw material procurement within the country, leading to increased domestic value addition.
Additionally, it is anticipated to encourage the participation of new players in the market and propel the growth of India’s battery industry, particularly in terms of deploying highly efficient cell technology. IndianOil is India’s largest commercial enterprise, with a sales turnover of over Rs. 5.06 lakh crore (US$ 68.59 billion) and profits of Rs. 21,836 crore (US$ 2.95 billion).
The company is a leading Indian energy conglomerate, operating the largest network of fuel stations in the country and dominating the downstream sector. Indian Oil is involved in refining, pipeline transportation, and marketing of petroleum products. The company is also actively involved in various social and community development initiatives, emphasizing sustainable development and corporate social responsibility.
Panasonic Energy India is a subsidiary of Panasonic Corporation, a multinational electronics corporation based in Japan. Panasonic Energy India is known for its high-quality batteries and energy solutions, catering to various sectors such as consumer electronics, automotive, and industrial applications. The company is committed to innovation and sustainability, aiming to provide reliable and eco-friendly energy solutions to its customers.
