Shares of Indian Oil Corporation (IOC) surged 2% on Monday after the company signed a binding term sheet with Panasonic Energy for the manufacturing of lithium-ion cells in India.
Panasonic Energy Co Ltd, a subsidiary of Japan-based multinational electronics company Panasonic Group, has inked a deal and initiated discussions with IOC, the nation’s biggest oil firm, to form a joint venture for the production of cylindrical lithium-ion batteries.
According to a statement released on Sunday, “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.”
Cylindrical lithium-ion batteries are commonly used in consumer electronics, power tools, and electric vehicles. Panasonic Energy is a renowned manufacturer of automotive lithium-ion batteries.
The collaboration between IOC and Panasonic Energy is expected to cater to the growing demand for lithium-ion batteries in India, particularly in the electric mobility and energy storage sectors.
As of 10:45 am, IOC’s shares were trading 1.34% higher at ₹170.00 on the National Stock Exchange (NSE), reflecting investor confidence in the company’s strategic move.
