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Indian Oil and Panasonic Energy Forge JV for Lithium-ion Cell Manufacturing in India

This post delves into the collaborative efforts of Indian Oil and Panasonic Energy to bolster India’s battery industry.

Indian Oil Corporation Limited (Indian Oil) and Panasonic Energy have recently inked a binding term sheet to establish a joint venture (JV) aimed at manufacturing cylindrical lithium-ion cells in India. This strategic move comes amidst a growing demand for batteries, particularly for two- and three-wheel vehicles, and energy storage systems in the Indian market. The collaboration underscores a concerted effort towards leveraging battery technology to accelerate the transition to clean energy in India.

Feasibility Study and Collaboration

The partnership between Indian Oil and Panasonic Energy stems from a rigorous feasibility study aimed at assessing the potential of battery technology in facilitating India’s clean energy transition. Following the signing of a Heads of Agreement in January 2024, the two entities are diligently working towards finalizing the details of their collaboration by the summer of the same year. This collaborative effort signifies a proactive approach towards addressing India’s energy needs while mitigating environmental challenges.

Investment in Local Manufacturing

The establishment of a JV for lithium-ion cell manufacturing not only caters to domestic demand but also fosters the development of a comprehensive supply chain ecosystem in India. With investments directed towards local manufacturing, the initiative aims to enhance India’s self-reliance and bolster its position in the global energy landscape. Moreover, this endeavour is poised to stimulate demand for raw material sourcing within the country, thereby promoting domestic value addition and fostering the growth of India’s battery industry.

Market Potential and Economic Impact

India’s burgeoning population of 1.4 billion underscores its immense market potential, further accentuated by projections of becoming the world’s third-largest economy in terms of GDP. The collaboration between Indian Oil and Panasonic Energy aligns with India’s aspirations for carbon neutrality by 2070, as it seeks to address environmental challenges while fostering economic growth. By tapping into Panasonic Energy’s expertise in battery development and manufacturing, the JV aims to contribute significantly to India’s energy transition journey.

Environmental Commitments and Technological Advancements

Indian Oil’s ambition to achieve net-zero operational emissions by 2046 aligns seamlessly with its partnership with Panasonic Energy. Through this collaboration, both companies are committed to harnessing highly efficient cell technology to reduce CO2 emissions and promote sustainability. Leveraging Panasonic Energy’s technological prowess, the JV aims to drive innovation in the lithium-ion battery industry, thereby facilitating India’s transition towards a greener and more sustainable future.


The collaboration between Indian Oil and Panasonic Energy heralds a significant milestone in India’s journey towards clean energy adoption. By establishing a JV for lithium-ion cell manufacturing, the two entities are poised to not only meet domestic demand but also contribute to the growth and development of India’s battery industry. This strategic alliance underscores a shared commitment towards fostering sustainability, innovation, and self-reliance, thereby paving the way for a greener and more prosperous future for India

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.