New Delhi, March 31 (IANS): Indian Oil Corporation Limited and Japan's Panasonic Energy Co. Ltd., a Panasonic Group company, have signed a binding term sheet to form a JV for manufacturing cylindrical lithium-ion cells in India for two-and three-wheel vehicles and energy storage systems, the public sector oil giant announced on Sunday.

Indian Oil and Panasonic Energy are engaged in a feasibility study regarding the utilization of battery technology to facilitate the transition to clean energy in India, with the aim of finalizing details of their collaboration by the summer of this year.

The companies plan to invest in setting up a local manufacturing supply chain ecosystem for improving India's self-reliance and fortifying the country's position in the global energy landscape. This will also lead to creating demand for raw material sourcing within the country, enhancing domestic value addition and the growth of India's battery industry in terms of highly efficient cell technology, Indian Oil said in a statement.

The public sector oil giant said it aims to address environmental challenges, such as reducing CO2 emissions, through its partnership with Panasonic Energy. Leveraging Panasonic Energy’s expertise in battery development and manufacturing, both companies will strive to contribute to the growth of the lithium-ion battery industry and to India's energy transition, while pursuing its mission of helping to build a sustainable society.

Indian Oil also stated that it is aiming to achieve its net-zero operational emissions target by 2046, aligning with the country's goal to achieve carbon neutrality for the country by 2070.

In recent years, Indian Oil has actively engaged in the development of clean energy sources, including the utilization of solar power, biofuels and hydrogen, it added.