Mahanagar Gas, IBC Set To Invest Rs. 230 Cr In Bengaluru Gigafactory

Indian natural gas distribution company, Mahanagar Gas Limited (MGL), recently signed a Share Subscription Agreement (SSA) and a Shareholding Agreement (SHA) with International Battery Company, Inc. (IBC US). Through this collaboration, both parties plan to invest in International Battery Company India Private Limited (IBC India), currently a 100% subsidiary of IBC US.

Under the agreement, MGL plans to invest Rs. 230 Crores in IBC India, in accordance with the agreements and the initial business plan. MGL and IBC US is expected to subscribe shares in an agreed shareholding proportion of 44:56, though this proportion may be adjusted if certain milestones are met, as specified in the Agreements.

California-based IBC US has already established a pilot facility in Seoul, South Korea, for the development and production of Li-ion cells and has secured certifications such as UN 38.3, BIS, and AIS for its prismatic NMC cells, also known as Lithium Nickel Manganese Cobalt Oxide cells. This product is specifically designed for the Indian market, with features like long warranty, fast charging, safety and reliable performance at high temperatures, recyclability, and easy integration into battery packs. These cells are currently being used for customer qualification trials with Indian clients. To address the local market demand, IBC US and MGL are setting up a Gigafactory in Bangalore, where MGL intends to hold at least a 40% stake in IBC India. The India facility will be a technology-agnostic plant initially producing prismatic NMC Li-ion cells with broad applications across the mobility and battery storage sectors.

Speaking on the occasion, Ashu Shinghal, Managing Director of MGL, said, “MGL has already committed investments in LNG retail, CBG, and electric vehicle manufacturing. Foray into battery cell manufacturing can strengthen our position in the evolving energy space, aligning with MGL’s objective of a cleaner future. Through IBC, MGL and IBC US can establish a gigafactory in India for indigenous battery cell manufacturing. This can enable consumers to source battery cells locally, which are currently being imported, thereby enhancing the sector’s competitiveness. We are excited to join hands with IBC US to cater to the growing demand for battery cells in India, contributing to the Government’s ‘Make in India’ initiative.”

Priyadarshi Panda, CEO of IBC Inc., said, “IBC is backed by some of the leading financial investors in India and globally, including RTP Global, BEENEXT, Shastra VC, and Falcon X, as well as a strong strategic investor and partner from South Korea, JASTECH. IBC’s go-to-market product was specifically designed to address the pain points of Indian OEMs and consumers. “