Panasonic Energy is in discussions with Indian Oil for a potential joint venture aimed at producing electric vehicle (EV) batteries in India. The Japanese battery supplier’s interest in India coincides with Tesla Giga Berlin’s plans to manufacture cars for the Indian market.
The proposed joint venture between Panasonic Energy and Indian Oil aims to manufacture cylindrical lithium-ion batteries in India. Both companies have expressed their intent to address the surging demand for batteries in India, particularly for two and three-wheeler vehicles, as well as energy storage systems.
To assess the feasibility of the collaboration, Panasonic Energy and Indian Oil will embark on a comprehensive feasibility study to explore various applications for battery technologies within the Indian market. The study is expected to conclude by the summer of 2024, following which further decisions will be made.
This development comes in the wake of Tesla’s efforts to establish a foothold in India. While Tesla’s entry into the Indian market has faced challenges, recent policy changes by the Indian government have facilitated the company’s plans. The new policy aims to attract foreign car manufacturers by reducing import taxes and incentivizing investments in local production.
Tesla’s proposed investment of $2 billion in a gigafactory in India has sparked significant interest. As Tesla explores potential factory locations in India, its suppliers, including Panasonic Energy, are also considering opportunities for collaboration and investment in the country’s burgeoning EV market.