India Gears Up for Electric Future: IOCL and Panasonic to Manufacture Lithium-Ion Batteries

Indian Oil Corporation Limited IOCL and Panasonic Energy Company Limited, a Panasonic Group company, have entered into a binding term sheet to formulate a framework for the formation of a joint venture to manufacture cylindrical lithium-ion cells in India in anticipation of growing demand. Have signed. Batteries for two-wheelers and three-wheelers and energy storage systems in the Indian market.

This signing of the binding term sheet comes soon after both the companies signed the heads of agreement on January 21, 2024. The two businesses are working on a feasibility study to determine whether battery technology might help India migrate to renewable energy. The study is expected to be completed in the upcoming months.

IOCL and Panasonic

Apart from meeting domestic requirements, investment in setting up local manufacturing will establish the entire supply chain.

Indian Oil Corporation, a leading oil marketing company, and Panasonic Energy Company, a Panasonic Group company, have entered into a binding agreement to work out a framework for the formation of a joint venture to manufacture cylindrical lithium-ion cells in India in anticipation of the growing demand for batteries. Term sheet is signed. Two and three wheelers and energy storage systems in the Indian market.

A joint venture to manufacture lithium-ion cells in India has been formed by Panasonic Energy and Indian Oil Corporation Limited (IOCL).

• This collaboration is in response to the expected growth in demand for electric vehicles (EVs) and energy storage solutions in the country.
• The partnership was announced on Sunday following an initial understanding between the two companies in January regarding lithium-ion cell production.
• The joint venture seeks to take advantage of India’s ambitious net-zero greenhouse gas emissions target by 2070.
• Lithium-ion batteries are key components in both EVs and renewable energy storage systems.
• According to the Economic Survey of the Government of India, India aims to sell more than 10 million EVs annually by 2030, which will result in a significant increase in demand for these batteries.
• By producing lithium-ion cells locally, the IOC-Panasonic Energy joint venture aims to assist India in the transition to sustainable mobility and energy solutions.
• Together with Panasonic’s experience in battery technology, the partnership will take advantage of IOC’s extensive refining and distribution capabilities.
• The location and production capacity of the lithium-ion battery plant have not yet been revealed.
• However, this partnership is expected to significantly contribute to India’s efforts to reduce its carbon footprint and promote the adoption of clean energy technologies.
• This kind of collaboration between industry leaders is critical to accelerating the development and deployment of renewable energy solutions as the world moves towards a more sustainable future.

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About lithium battery

• Lithium is primarily used in the production of electronics, particularly rechargeable lithium-ion batteries.
• These batteries are used in electric vehicle manufacturing as well as for large-scale battery storage.

India’s recent lithium reserve discovery

• The Geological Survey of India (GSI) has recently identified significant lithium reserves of 5.9 million tonnes in the Salal-Haimana area of Reasi district of Jammu and Kashmir (J&K).
• Apart from this, Lithium has also been discovered in Revant Hills of Degana, Nagaur in Rajasthan.
• Currently, India is heavily dependent on imports for all key components required for lithium-ion cell manufacturing.
• In the first eight months of FY 2022–2023 India has spent around US $20.64 million on imports of lithium-based products due to the steep growth in demand.
• However, the discovery of lithium reserves in Reasi district is expected to significantly reduce India’s dependence on lithium imports, thereby promoting the country’s self-reliance in this sector.

FAQs: IOCL-Panasonic Joint Venture for Lithium-Ion Battery Manufacturing in India