New Delhi: State-run Indian Oil Company Ltd (IOCL) has introduced it’ll kind a three way partnership with Japan’s Panasonic Power to fabricate cylindrical lithium-ion cells in India.
The businesses have now signed a binding time period sheet to attract up a framework for the three way partnership, after signing a heads of settlement on 21 January. A heads of settlement is a non-binding doc outlining the principle points related to a tentative sale, partnership, or different settlement.
The 2 corporations are at the moment conducting a feasibility examine on utilizing battery expertise to facilitate India’s transition to wash power. The submitting stated each corporations intention to finalise particulars of their collaboration by this summer season.
The event comes as lithium-ion cell manufacturing in India is gaining momentum with sturdy demand from each electrical automobiles and battery power storage techniques (BESS).
IOCL stated in a regulatory submitting on Sunday, “Aiming to empower the transition to wash power in India, Indian Oil Company Restricted and Panasonic Power Co. Ltd. have signed a binding time period sheet to attract a framework for formation of a JV for manufacturing cylindrical lithium-ion cells in India in anticipation of increasing demand for batteries for two-and three-wheel automobiles and power storage techniques within the Indian market.”
“Along with assembly home necessities, investments in organising native manufacturing will arrange an entire provide chain ecosystem bettering India’s self-reliance, fortifying India’s place within the world power panorama,” it added. IOCL stated the three way partnership may even create demand for raw-material sourcing inside the nation, improve home worth addition, and encourage extra corporations to enter the market.
The oil advertising and marketing firm has been trying to diversify its operations because it goals to attain net-zero carbon emissions from operations by 2046. Lately, Indian Oil has been concerned in growing clear power sources, together with solar energy, biofuels and hydrogen.
“Leveraging Panasonic Power’s experience in battery growth and manufacturing, each corporations will try to contribute to the expansion of the lithium-ion battery trade and to India’s power transition, whereas pursuing its mission of serving to to construct a sustainable society,” stated the submitting.
Panasonic Power Co Ltd, established in April 2022 as a part of the Panasonic Group’s change to an working firm system, gives battery technology-based merchandise and options globally.
Shares of IOCL closed at ₹167.75 on the BSE on Thursday, up 0.90% from their earlier shut.
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Printed: 31 Mar 2024, 07:05 PM IST
Supply: Live Mint