IOCL Joined with Panasonic for Manufacturing Lithium-ion cells

Utkarsh Classes Last Updated 02-04-2024

Agreements and MoU 4 min read

Indian Oil Corporation Ltd. (IOCL) has partnered with Panasonic Energy to create a joint venture for producing lithium-ion cells in India.

This collaboration is in response to the expected increase in demand for electric vehicles (EVs) and energy storage solutions in the country.
The partnership was announced on Sunday following an initial understanding between the two companies in January about lithium-ion cell production.
The joint venture seeks to take advantage of India's ambitious net-zero greenhouse gas emissions target by 2070.
Lithium-ion batteries are critical components in both EVs and renewable energy storage systems.
India aims to sell over 10 million EVs annually by 2030, according to the Indian government's Economic Survey, resulting in a significant increase in demand for these batteries.
By locally producing lithium-ion cells, the IOC-Panasonic Energy joint venture aims to assist India in transitioning to sustainable mobility and energy solutions.
The collaboration will leverage IOC's vast refining and distribution capabilities, combined with Panasonic's battery technology expertise.
The location and production capacity of the lithium-ion battery plant have yet to be revealed.
However, the partnership is expected to make a significant contribution to India's efforts to reduce its carbon footprint and promote the adoption of clean energy technologies.
Collaborations such as this between industry giants are critical for accelerating the development and deployment of renewable energy solutions as the world moves toward a more sustainable future.

About Lithium

Lithium is primarily used in the production of electronics, particularly in rechargeable lithium-ion batteries. These batteries are utilized for electric vehicle manufacturing as well as battery storage on a larger scale.

The Geological Survey of India (GSI) has recently identified significant lithium reserves of 5.9 million tonnes in the Salal-Haimana region of the Reasi district in Jammu and Kashmir (J&K).
Additionally, lithium has also been discovered in Revant Hill of Degana, Nagaur of Rajasthan.
Currently, India is heavily dependent on imports for all major components required for lithium-ion cell manufacturing.
Due to the sharp increase in demand, India has spent approximately US$ 20.64 million on lithium-based imports in the first eight months of FY 2022-23.
However, the discovery of lithium reserves in the Reasi district is expected to significantly decrease India's dependence on lithium imports, thereby boosting the country's self-sufficiency in this area.