Indian Oil Corporation Limited (IndianOil) and Panasonic Energy, a Panasonic Group Company, have signed a binding term sheet to draw a framework for 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.

This signing of binding term sheet follows soon after the signing of a Heads of Agreement on 21st January 2024 at New Delhi by the two companies. The two companies are engaged 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.

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, fortifying India's position in the global energy landscape. 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.

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. IndianOil is aiming to achieve its net-zero operational emissions target by 2046, aligning with the India’s goal to achieve carbon neutrality for the country 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.

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 to India's energy transition, while pursuing its mission of helping to build a sustainable society.