Panasonic Energy, a Panasonic Group Company, signed a binding term sheet and initiated discussions with Indian Oil Corporation to draw a framework for formation of a joint venture to manufacture cylindrical lithium-ion batteries. This 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 will be engaging in a feasibility study regarding the utilization of battery technology to facilitate the transition to clean energy in India, with the aim of finalizing details of their collaboration by the summer of this year.

With a population of 1.4 billion, India’s market potential is underscored by its projection to become the world’s third-largest economy in GDP, following only the United States and China.

IndianOil is the largest state-owned oil production company in India and is aiming 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. In recent years IndianOil has actively engaged in the development of clean energy sources, including the utilization of solar power, biofuels and hydrogen.

Through its partnership with IndianOil, Panasonic Energy 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 the India’s battery industry by enhancing cell technology and creating domestic demand for raw materials and new entrants.