Panasonic Energy Co Ltd has signed a binding term sheet and initiated discussions with Indian Oil Corporation Ltd 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 are engaging in a feasibility study regarding the utilization of battery technology to facilitate the transition to clean energy in India, with the aim of finalizing details of their collaboration by the summer of this year, a release by Panasonic Energy said.
Market potential
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 and is aiming to achieve net-zero carbon emissions by 2046, aligning with the Indian government’s plan to achieve net-zero for the country as a whole by 2070. In recent years IndianOil has actively engaged in the development of clean energy sources, including the utilization of solar power, biofuels and hydrogen.
Reducing CO2 emissions
Through its partnership with IndianOil, Panasonic Energy aims to address environmental challenges such as reducing CO2 emissions, as well as to contribute to establishing a complete supply chain ecosystem for improving India’s self-reliance fortifying India’s position in the global energy landscape. This will also lead to the growth of India’s battery industry by enhancing cell technology and creating domestic demand for raw materials and new entrants. Leveraging its expertise in battery development and manufacturing, Panasonic Energy strives to contribute to the growth of the lithium-ion battery industry and to India’s energy transition, while pursuing its mission of helping to build a sustainable society, the release added.
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