2024-04-03 02:31:19
New Delhi: Petroleum sector giant government company Indian Oil Corporation of India has taken an important step towards battery manufacturing. IOC has announced to start a joint venture with Japanese company Panasonic Energy. The company has said that it will manufacture lithium-ion cells in India through a joint venture (JV) with Panasonic Energy.
Demand for storage batteries is increasing
According to a statement issued here by the company, IOC has formed this joint venture in view of the increasing demand for clean energy. In the Indian market, the demand for lithium batteries in two wheelers and three wheelers is increasing rapidly. Along with this, the demand for batteries for energy storage systems is also increasing rapidly. Keeping this in view, the company has decided to manufacture cylindrical lithium ion cells in India.
Sign binding term sheet
According to the company, this has happened with the aim of strengthening the transition to clean energy in India. IndianOil and Panasonic Energy Co. Ltd, a Panasonic Group company, have signed a binding term sheet to prepare a framework for the joint venture.
Talks started in January
It is noteworthy that this conversation between the two companies had started in January itself. For this, both the companies had signed the Heads of Agreement on January 21, 2024 itself. Both the companies have also started a feasibility study regarding the utilization of battery technology. It is expected that the final details regarding this will come by the summer of this year.
What is Lithium Ion Battery?
Lithium ion batteries are made up of many lithium cells. It consists of electrode, cathode and anode to produce energy. Ions move between the cathode and anode and produce electric current. India aims to become a net zero emitter of greenhouse gases by 2070. In such a situation, these batteries will prove to be very helpful because they are used in electric vehicles (EVs) and also work as energy storage. Indian Oil said that its target is also in line with this target of the government. The company wants to achieve net zero carbon emissions by 2046.
Demand for lithium ion batteries is increasing
India has a population of 140 crores. It has been estimated that India will soon become the third largest economy in the world in terms of GDP. India’s Annual Economic Survey states that more than 1 crore electric vehicles will be sold in the country by 2030. In this context, the demand for lithium ion batteries is going to increase in the coming time.
Indian Oil shares may rise today!
This news came while the stock markets were closed. When the stock market opens today, the impact of the deal made between these companies can also be seen on the shares of IOC. Shares of Indian Oil on NSE closed at Rs 168 with a gain of 1.08 per cent on the last trading day of this week. If we talk about the performance of its shares on NSE, the company has given a return of about 136 percent in one year. At the same time, its shares have increased by about 95 percent in 6 months. The current market valuation i.e. market cap (mcap) of the company is more than Rs 2.37 lakh crore on NSE.