Panasonic, Indian Oil to form battery JV in India

Indian petroleum refiner and fuel retailer Indian Oil Corporation Ltd (BOM:530965) and Japan’s Panasonic Energy Co Ltd are looking to set up a joint venture (JV) to make lithium-ion batteries in India to serve the electric vehicle (EV) and energy storage markets.

The parties have signed a binding term sheet to discuss the matter and draw a framework for establishing the JV, Panasonic said on Monday.

The plan calls for the two firms to produce cylindrical lithium-ion batteries at an unspecified location in India. As a start, they will carry out a feasibility study to assess the potential for battery deployment in the Indian market, planning to be ready with all details about their collaboration by the summer.

The partners aim to address the expected rise in demand for EV batteries and energy storage systems in India, which is pursuing a goal to become net zero by 2070.

Indian Oil, meanwhile, is growing its presence in the renewable energy market by adding solar, biofuel and hydrogen production capacity as it aims to achieve net-zero emissions from its operations by 2046.

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