City gas distributor Mahanagar Gas Ltd signed a share subscription agreement and a shareholding agreement (SHA) with International Battery Company, Inc. (IBC US) on November 7 through which both parties will invest in International Battery Company India Private Limited (IBC) to form a joint venture firm, which is currently a 100% subsidiary of IBC US. Mahanagar Gas will invest ₹230 crore in IBC India.
To address the local market requirement, IBC US and MGL are setting up a gigafactory in Bengaluru. MGL intends to take at least 40% stake in IBC. The India facility will be a technology-agonistic plant which will initially produce prismatic NMC Li-ion cells having a wide application across mobility and battery storage sectors.
IBC US, based in California, has put up a pilot facility in Seoul, South Korea for the development and production of Li-ion cell and has secured certifications such as UN 38.3, BIS, and AIS for their prismatic NMC cells. This go-to-market product has been designed and developed with a focus on the specific requirements of the Indian market such as long warranty, fast charging, safety and reliable performance at high temperatures, recyclability, and easy integration into battery packs and are currently being used for customer qualification trials with Indian customers, the state-owned company says in a statement.
“MGL has established itself as a leading CGD company and a key player in India’s energy landscape. MGL has already committed investments in LNG retail, CBG and Electric Vehicle manufacturing. Foray into battery cell manufacturing will strengthen its position in the evolving energy space which aligns with MGL’s objective of a cleaner future,” says Ashu Shinghal, managing director of MGL.
“IBC has a capable and experienced team who has worked with leading technology companies globally. Through IBC, MGL and IBC US will set up a gigafactory in India for Indigenous battery cell manufacturing. This will enable the consumers to source battery cells locally, which are currently being imported, thereby enhancing the competitiveness of the sector. We are excited to join hands with IBC US to cater to the growing requirement of battery cells in India thereby realising “Make in India” objective of the Government,” says Shinghal.
“IBC is backed by some of the leading financial investors in India and the world such as RTP Global, BEENEXT, Shastra VC and Falcon X as well as a very strong strategic investor and partner from South Korea in JASTECH. IBC’s go to market product was designed specifically to address the pain points of the Indian OEMs and consumers,” says Priyadarshi Panda, CEO of IBC, Inc. “Energy independence is a key objective for any nation and more so India and Li ion cells are at the core of this objective. The partnership of IBC US and MGL in setting up one of India’s first giga factories around the future proof prismatic form factor will enable indigenous supply chain security of one of the key bottlenecks today in India’s journey towards energy independence while significantly reducing billions of dollars of forex expenditure,” says Panda.
Meanwhile, Bhavish Aggarwal’s Ola Electric is looking to start commercial production of battery cells early next year. Ola claims its ‘4680 cell’ is five times bigger than existing lithium-ion cylindrical cells used in electric vehicles. Ola secured the highest 20 GWh (gigawatt hour) allocation under the production-linked incentive scheme of the government.
