Panasonic Energy Co., Ltd., a Panasonic Group Company, has signed a binding term sheet and initiated discussions with Indian Oil Corporation Limited to draw a framework for the formation of a joint venture to manufacture cylindrical lithium-ion batteries. This initiative is driven by the anticipated expansion of demand for batteries for two- and three-wheel vehicles and energy storage systems in the Indian market. The two companies will be engaging in a feasibility study regarding the utilization of battery technology to facilitate the transition to clean energy in India. They target to finalize the details of their collaboration by the summer of this year.

With a population of 1.4 billion, India’s market potential is underscored by its projection to become the world’s third-largest economy in GDP, following only the United States and China. 

IndianOil is the largest state-owned oil production company in India. It aims to achieve net-zero carbon emissions by 2046. This aligns with the Indian government’s plan to achieve net zero for the whole country by 2070. In recent years, IndianOil has actively engaged in the development of clean energy sources. Among them include the utilization of solar power, biofuels and hydrogen.

Through its partnership with IndianOil, Panasonic Energy aims to address environmental challenges such as reducing CO₂ emissions. Also, it plans to contribute to establishing a complete supply chain ecosystem for improving India’s self-reliance. Accordingly, this will fortify India’s position in the global energy landscape. Eventually, this will also lead to the growth of India’s battery industry. Particularly, the partnership will enhance cell technology and create domestic demand for raw materials and new entrants.

Panasonic Energy will leverage its expertise in battery development and manufacturing. Thus, it will strive to contribute to the growth of the lithium-ion battery industry and to India’s energy transition. At the same time, it will pursue its mission of helping to build a sustainable society.

-03 April 2024-