IOCL and Panasonic Energy Partner to Meet Rising Demand for Lithium-Ion Cells in India

On March 31, 2024, State-owned Indian Oil Corporation Ltd (IOCL) announced that they had signed a binding term sheet with Panasonic Energy to draw a framework for the formation of a joint venture (JV) to manufacture cylindrical lithium-ion cells in India.

Details of the Pact

On Sunday, Indian Oil Corporation Ltd and a Panasonic Group company, Panasonic Energy Co. Ltd, signed a binding term sheet to draw a framework for forming a JV for manufacturing lithium-ion cells. The company stated in an exchange filing that this initiative anticipates growing demand for batteries for 2-wheeler and 3-wheeler vehicles and energy storage systems in the Indian market.

This signing of the binding term sheet follows soon after the signing of a Heads of Agreement on January 21, 2024, by the two companies. IOCL and Panasonic Energy are involved in a feasibility study regarding the utilisation of battery technology to facilitate the transition to clean energy in India, with the aim of finalising details of their collaboration by the summer of this year.

In the exchange filing, Indian Oil Corporation Ltd stated that in addition to meeting domestic needs, investments in setting up local manufacturing would set up a complete supply chain ecosystem, improving India’s self-reliance and fortifying the country’s place in the global energy landscape. This will also create demand for raw material sourcing within the country, enhance domestic value addition, encourage the entry of new market participants, and increase India’s battery industry in terms of highly efficient cell technology.

The company further added that it strives to address environmental challenges, like reducing CO2 emissions, through its partnership with Panasonic Energy. Leveraging Panasonic Energy’s expertise in battery development and manufacturing, both companies will seek to contribute to the growth of the lithium-ion battery industry and India’s energy transition while pursuing their mission of helping build a sustainable society.

On April 1, 2024, the share price of Indian Oil Corporation Ltd opened at ₹169.95, touching the day’s high at ₹171.25, as of 9:53 AM on the NSE.

About Indian Oil Corporation Ltd

Indian Oil Corporation Ltd is a Maharatna Company controlled by the Indian Government. The company is an integrated energy player with a presence in gas, oil, petrochemicals and alternative energy sources.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.