IOCL, Panasonic Energy Form JV For EV Batteries

IOCL, Panasonic Energy Form JV For EV Batteries

Indian Oil Corporation Limited and Panasonic Energy, a Panasonic Group Company, have signed a binding term sheet to draw a framework for the 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, the press statement by IOCL stated.

This signing of a binding term sheet follows soon after the signing of a Heads of Agreement on 21st January in New Delhi by the two companies. As per IOCL, the two companies are engaged in a feasibility study regarding the utilization of battery technology to facilitate the transition to clean energy in India, to finalise details of their collaboration by the summer of this year. The term sheet was signed in the presence of Mr. Shrikant Madhav Vaidya, Chairman, IndianOil and Mr. Kazuo Tadanobu, President & CEO, Panasonic Energy Co. Ltd.

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

On the deal with Panasonic, IOCL has stated, “This will also lead to creating demand for raw material sourcing within the country, enhancing domestic value addition, encourage the entry of new market participants and the growth of India’s battery industry in terms of highly efficient cell technology.”

“IndianOil aims to address environmental challenges, such as reducing CO2 emissions, through its partnership with Panasonic Energy. Leveraging Panasonic Energy’s expertise in battery development and manufacturing, both companies will strive to contribute to the growth of the lithium-ion battery industry and India’s energy transition, while pursuing its mission of helping to build a sustainable society,” it added.

Last month, EV chargers manufacturer Servotech Power Systems Ltd. announced it had bagged an order of 1400 DC fast EV chargers from Indian Oil Corporation Limited (IOCL) and other EV charger OEMs. The total order is valued at Rs 111 crores and involves two charger variants of 60 kW and 120 kW.