IOCL and Panasonic Forge Partnership to Manufacture Lithium-Ion Cells
The Indian Oil Corporation Ltd (IOCL), under government management, has revealed plans to establish a joint venture with Panasonic Energy of Japan. This partnership aims to produce cylindrical lithium-ion cells within India.
Following the signing of a heads of agreement on January 21, the companies have now inked a binding term sheet to develop a framework for the joint venture. A heads of agreement is a non-binding document that summarizes the key points of a proposed partnership, transaction, or other agreement.
Both entities are presently engaged in a feasibility assessment regarding the utilization of battery technology to support India’s shift towards clean energy. According to the statement, they intend to conclude the specifics of their partnership by this summer.
This advancement coincides with the increasing momentum of lithium-ion cell manufacturing in India, driven by strong demand from electric vehicles and battery energy storage systems (BESS).
“Aiming to empower the transition to clean energy in India, Indian Oil Corporation Limited and Panasonic Energy Co. Ltd. have signed a binding term sheet to draw a framework for formation of a JV for manufacturing cylindrical lithium-ion cells in India in anticipation of expanding demand for batteries for two-and three-wheel vehicles and energy storage systems in the Indian market.”
IOCL said in a regulatory filing.
“Investments in establishing local manufacturing will set up a whole supply chain ecosystem enhancing India’s self-reliance, solidifying India’s position in the global energy scene,” it continued, in addition to addressing domestic requirements. According to IOCL, the joint venture will also boost local value addition, drive demand for sourcing raw materials domestically, and attract new businesses to the market.
The oil marketing company has been exploring diversification in its operations as part of its goal to achieve net-zero carbon emissions from operations by 2046. Over recent years, Indian Oil has actively pursued the development of clean energy sources, such as solar power, biofuels, and hydrogen.
“Drawing on Panasonic Energy’s expertise in battery development and manufacturing, both entities aim to contribute to the advancement of the lithium-ion battery industry and support India’s energy transition, all while fulfilling their mission of fostering a sustainable society.”
According to the filing.
Panasonic Energy Co Ltd, established in April 2022 as part of the Panasonic Group’s transition to an operating company system, delivers battery technology-based products and solutions on a global scale.