Panasonic and IndianOil forge joint venture for Lithium-Ion batteries

Partnership aims to fuel clean energy transition in populous nation of India with over 1.4 billion people.

Panasonic Energy Co., Ltd., a Panasonic Group Company, has announced today the signing of a binding term sheet and the commencement of discussions with Indian Oil Corporation Limited (“IndianOil”; New Delhi) to establish a joint venture for the production of cylindrical lithium-ion batteries. This endeavour stems from the projected surge in demand for batteries, particularly for two- and three-wheel vehicles, and energy storage systems within the Indian market. The two entities are presently conducting a feasibility study to explore the integration of battery technology in facilitating India’s transition to clean energy. Their objective is to finalize the specifics of their collaboration by the summer of this year.

India’s market potential, underscored by its 1.4 billion population and its forecasted ascension to the world’s third-largest economy in GDP, after the United States and China, emphasises the significance of this initiative. IndianOil, as the largest state-owned oil production company in India, is committed to achieving net-zero carbon emissions by 2046, in alignment with the Indian government’s broader objective of achieving national net-zero emissions by 2070. In recent years, IndianOil has been actively involved in the development of clean energy sources, including solar power, biofuels, and hydrogen.

Through its partnership with IndianOil, Panasonic Energy aims to address environmental challenges such as CO2 emissions reduction, while also contributing to the establishment of a comprehensive supply chain ecosystem, thereby enhancing India’s self-reliance and fortifying its position in the global energy landscape. This collaboration will also stimulate growth in India’s battery industry by advancing cell technology and stimulating domestic demand for raw materials and new market participants. Leveraging its proficiency in battery development and manufacturing, Panasonic Energy is dedicated to bolstering the lithium-ion battery industry’s growth and supporting India’s energy transition, all while advancing its mission of fostering a sustainable society.