The term sheet was signed in the presence of Indian Oil Chairman Shrikant Madhav Vaidya and president and CEO of Panasonic Energy Co Kazuo Tadanobu.
| Photo Credit: Arrangement
State-owned refiner Indian Oil Corporation and Panasonic Group company Panasonic Energy Co. have signed a binding term sheet to draw framework of their proposed joint venture (JV) to manufacture cylindrical lithium-ion cells in India.
The signing of the term sheet follows a heads of agreement they entered into in January. Setting the backdrop for the JV is the anticipation of expanding demand for batteries for two-and three-wheelers and energy storage systems in the Indian market.
The two companies are engaged in a feasibility study on utilisation of battery technology for facilitating the transition to clean energy in India. They aim to finalise details of their collaboration by the summer of this year. Leveraging Panasonic Energy’s expertise in battery development and manufacturing, the JV will strive to contribute to the growth of the lithium-ion battery industry and to India’s energy transition, Indian Oil said on March 31 in a release.
In addition to meeting domestic requirements, investments in setting up local manufacturing will set up a complete supply chain ecosystem improving India’s self-reliance and fortifying the country’s position in the global energy landscape. This will lead to creating demand for raw material sourcing within the country, enhancing domestic value addition, encourage the entry of new market participants and the growth of India’s battery industry in terms of highly efficient cell technology, the national oil company said.
Indian Oil said it is aiming to achieve its net-zero operational emissions target by 2046 and in recent years actively engaged in development of clean energy sources, including the utilisation of solar power, biofuels and hydrogen.
