Indian Oil Corporation (IOCL) has agreed to form a joint venture (JV) with Panasonic Energy to manufacture lithium-ion cells in India to meet the rising local demand. The agreement follows an initial understanding between the two companies on lithium-ion cells in January, 2024.

The joint venture will manufacture cylindrical li-ion batteries which have applications ranging from consumer electronics to two- and three-wheelers, as well as battery storage systems (BESS). Towards this, the group firm of the Japan-based multinational electronics company has signed a binding term sheet and initiated discussions with IOCL to work out a framework for the formation of the JV. 

The initiative is led by the anticipated growth in demand for batteries for two- and three-wheel vehicles and energy storage systems in India. These segments are on a growth trend resonating the pace of transition, leading to substantial demand for li-ion batteries. Similarly, battery storage has been identified as a key element in making solar projects a viable source of round-the-clock (RTC) power. 

The JV with Panasonic exemplifies IOCL's latest clean energy initiative to meet its 2046 net-zero target. Lithium-ion batteries, powering electric vehicles (EV) and used for storing energy, are expected to play a vital role in India's goal to be a net-zero emitter of greenhouse gases by 2070.