Panasonic, IOC form JV to make li-ion batteries in India

NEW DELHI: Japanese electronics, white goods and tech solutions giant Panasonic is setting up a joint venture with state-run Indian Oil to manufacture lithium-ion (li-ion) batteries and energy storage systems in India to tap the anticipated growth in demand in the wake of energy transition gathering pace in the country.

Panasonic will execute the joint venture through its group arm, Panasonic Energy, which has signed a binding agreement with India’s largest oil refiner and fuel retailer for working out the joint venture framework by “this summer”, Panasonic said on Sunday.

The joint venture will manufacture cylindrical li-ion batteries that have a wide range of applications — from consumer electronics to two- and three-wheelers — as well as battery storage systems, the latest buzzword in the renewable power sector.

The two- and three-wheeler segments have shown healthy growth in the pace of transition in India, 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 power.

The joint venture with Panasonic is IndianOil’s latest clean energy initiative to meet its 2046 net-zero target. The company has a venture with Phinergy, an Israeli start-up specialising in hybrid li-ion and aluminium-air/zinc-air battery systems.

Panasonic already has a footprint in India’s energy transition through group company Panasonic Life Solutions choosing the country as a base for expanding production of solar gears to serve the domestic and select export markets.

Panasonic and IndianOil are conducting a feasibility study for selecting battery technology suitable for India’s energy transition pathway.

The partnership with IndianOil will lead to the growth of India's battery industry by enhancing cell technology and creating domestic demand for raw materials and new entrants, Panasonic said.

Through its partnership with IndianOil, Panasonic Energy aims to contribute towards India’s goals of achieving self-reliance in battery manufacturing by establishing a complete supply chain ecosystem.