Indian Oil and Panasonic Partner to Make Lithium-Ion Cells in India
Indian Oil Corporation, a prominent oil marketing company, and Panasonic Energy Co, a subsidiary of the Panasonic Group, have entered into a binding term sheet to establish a joint venture aimed at manufacturing cylindrical lithium-ion cells in India. This initiative is driven by the expected growth in demand for batteries, particularly for two- and three-wheel vehicles as well as energy storage systems in the Indian market.
The signing of the binding term sheet comes shortly after the Heads of Agreement was signed on January 21, 2024, in New Delhi. Both firms are currently conducting a feasibility study on the use of battery technology to support India's shift towards clean energy. They aim to finalize the specifics of their partnership by summer this year. Indian Oil will utilize Panasonic Energy's proficiency in battery development and manufacturing.
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 and 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, encouraging the entry of new market participants and the growth of India's battery industry in terms of highly efficient cell technology.
Indian Oil is striving to attain its target of achieving net-zero operational emissions by 2046, which is in line with India's objective of reaching carbon neutrality by 2070. Over the past few years, Indian Oil has been actively involved in the advancement of clean energy sources, such as the adoption of solar power, biofuels, and hydrogen.
Indian Oil's collaboration with Panasonic Energy is geared towards tackling environmental issues like CO2 emissions reduction. By harnessing Panasonic Energy's proficiency in battery development and manufacturing, the two entities aim to bolster the lithium-ion battery sector's expansion and support India's energy transition efforts. Through this partnership, they are dedicated to advancing their mission of fostering a sustainable society.
