The companies have signed a term sheet to establish a framework for a joint venture to manufacture cylindrical lithium-ion cells in India, anticipating growing demand for batteries in electric two- and three-wheelers and energy storage systems in the Indian market.
The Indian Oil Corporation, a leading oil marketing company, and Panasonic Energy Co, a Panasonic Group Company, have signed a binding term sheet to establish a joint venture for manufacturing cylindrical lithium-ion cells in India. This collaboration anticipates the growing demand for batteries in two- and three-wheel vehicles and energy storage systems in the Indian market.
This agreement follows closely after the signing of a Heads of Agreement on January 21, 2024, in New Delhi. The two companies are conducting a feasibility study on the use of battery technology to support India’s transition to clean energy, aiming to finalize the details of their collaboration by summer this year. Indian Oil will leverage Panasonic Energy’s expertise in battery development and manufacturing to meet domestic requirements and establish a complete supply chain ecosystem. This investment in local manufacturing will enhance India’s self-reliance and strengthen its position in the global energy landscape, creating demand for raw material sourcing within the country, boosting domestic value addition, encouraging new market entrants, and fostering the growth of India’s battery industry with highly efficient cell technology.
Indian Oil is committed to achieving its net-zero operational emissions target by 2046, aligning with India’s goal of carbon neutrality by 2070. The company has actively engaged in developing clean energy sources, including solar power, biofuels, and hydrogen, in recent years.
Through its partnership with Panasonic Energy, Indian Oil aims to address environmental challenges such as reducing CO2 emissions. By leveraging Panasonic Energy’s expertise in battery development and manufacturing, both companies will contribute to the growth of the lithium-ion battery industry and India’s energy transition, supporting the mission to build a sustainable society.
