In an effort to drive the transition to clean energy in India, Indian Oil Corporation Limited (“IndianOil”) and Panasonic Energy Co. Ltd., a subsidiary of the Panasonic Group, have entered into a binding term sheet to establish a joint venture (JV) focused on manufacturing cylindrical lithium-ion cells within India. This agreement anticipates the growing demand for batteries, particularly for two- and three-wheel vehicles and energy storage systems, in the Indian market. The signing of this binding term sheet closely follows the execution of a Heads of Agreement between the two companies on January 21, 2024, in New Delhi. Currently, both entities are conducting a feasibility study to explore the utilization of battery technology in facilitating India’s clean energy transition, with the objective of finalizing collaboration details by summer.

In addition to catering to domestic needs, investments in local manufacturing are expected to establish a comprehensive supply chain ecosystem, enhancing India’s self-reliance and strengthening its global energy standing. This initiative will also stimulate demand for domestic raw material sourcing, promote domestic value addition, facilitate the entry of new market participants, and foster the growth of India’s battery industry with the adoption of highly efficient cell technology.

India, with a population of 1.4 billion, demonstrates significant market potential, poised to become the world’s third-largest economy in GDP. Indian Oil Corporation Limited (IndianOil) is committed to achieving its net-zero operational emissions target by 2046, aligning with India’s broader goal of attaining carbon neutrality by 2070. In recent years, IndianOil has actively pursued the development of clean energy sources, including solar power, biofuels, and hydrogen.

Through its partnership with Panasonic Energy, IndianOil aims to address environmental challenges such as CO2 emissions reduction. Leveraging Panasonic Energy’s expertise in battery development and manufacturing, both companies will work towards fostering the growth of the lithium-ion battery industry and supporting India’s energy transition. This collaboration aligns with their shared mission of contributing to the establishment of a sustainable society.


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