Panasonic Energy is in talks with Indian Oil for a joint venture to manufacture cylindrical lithium-ion batteries for two- and three-wheel vehicles and energy storage systems in the Indian market. Panasonic has signed a binding term sheet and initiated discussions with Indian Oil to draw a framework for the formation of the joint venture.

“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,” said Panasonic.

The two companies are engaging in a feasibility study regarding the use of battery technology to facilitate the transition to clean energy in India and aim to finalize their collaboration by the summer.

Panasonic Energy, established in April 2022, provides innovative battery technology-based products and solutions globally. Through its automotive lithium-ion batteries, storage battery systems and dry batteries, the company caters to a broad range of business areas, from mobility and social infrastructure to medical and consumer products.

Indian Oil is the largest state-owned oil production company in India. It aims 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 use of solar power, biofuels and hydrogen.

The partnership will leverage Panasonic Energy’s expertise in battery development and manufacturing.

“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 in the energy landscape,” said Panasonic Energy. “This will also lead to the growth of India’s battery industry by enhancing cell technology and creating domestic demand for raw materials and new entrants.”