Public sector major Indian Oil Corporation (IOC) is planning a joint venture (JV) with Japanese firm Panasonic Energy Co., Ltd., to manufacture cylindrical lithium-ion batteries in India.

Panasonic and IOC have signed a binding term sheet and initiated discussions to draw a framework for the formation of the JV, Panasonic Energy has stated. The company said the initiative is driven by the anticipated expansion of demand for batteries for two-and three-wheel vehicles and energy storage systems in the Indian market. The two companies are engaging in a feasibility study regarding the utilisation of battery technology to facilitate the transition to clean energy in India, to finalise details of their collaboration during the current year.

Panasonic Energy stated that through its partnership with IOC, the company aims to address environmental challenges such as reducing CO2 emissions, as well as to contribute to establishing a complete supply chain ecosystem for improving India’s self-reliance fortifying India's position in the global energy landscape. “This will also lead to the growth of India's battery industry by enhancing cell technology and creating domestic demand for raw materials and new entrants. Leveraging its expertise in battery development and manufacturing, Panasonic Energy strives 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,” an official statement said.

Established in April 2022, Panasonic Energy provides innovative battery technology-based products and solutions globally. The company states that through its automotive lithium-ion batteries, storage battery systems and dry batteries, Panasonic Energy brings safe, reliable, and convenient power to a broad range of business areas, from mobility and social infrastructure to medical and consumer products.

IOC, India’s largest state-owned oil production company, aims to achieve net-zero carbon emissions by 2046, aligning with the Indian government's plan to achieve net-zero for the country as a whole by 2070. A diversified, integrated energy major, IOC has a presence in almost all the streams of oil, gas, petrochemicals, and alternative energy sources. In recent years the company has been actively engaged in the development of clean energy sources, including the utilisation of solar power, biofuels and hydrogen.

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