Mahanagar Gas Ltd. (MGL), a prominent city gas distribution company, announced on November 7 its strategic entry into battery cell manufacturing through a new joint venture with the U.S.-based International Battery Company (IBC). The collaboration marks MGL’s foray into the energy storage sector and aligns with India’s growing demand for advanced battery solutions in mobility and energy storage applications.
MGL has invested Rs 230 crore in the venture, which will be established with a 44:56 shareholding split between MGL and IBC, respectively. The companies will establish a high-tech gigafactory in Bengaluru through this joint venture to support the large-scale production of prismatic NMC lithium-ion (Li-ion) battery cells. The facility will be adaptable to various battery technologies, initially focusing on prismatic NMC cells suitable for diverse applications across mobility and energy storage sectors. MGL aims to acquire at least a 40% stake in IBC to deepen its battery production stake.
“This move strengthens MGL’s presence in India’s evolving energy landscape,” said Ashu Shinghal, Managing Director of MGL. “Our partnership with IBC will allow us to build a gigafactory in India dedicated to producing indigenous battery cells, a key step in supporting India’s ‘Make in India’ initiative and reducing reliance on imported batteries.” Shinghal emphasized that this development enhances India’s energy security while fostering domestic manufacturing capabilities.
As per the agreement, MGL will handle the manufacturing, promotion, marketing, distribution, and sale of the battery cells produced at the Bengaluru facility. Governance of the new venture will include two board members appointed by MGL and three by IBC, ensuring balanced oversight between the two partners.
IBC, known for its expertise in lithium-ion cell development and manufacturing, is backed by prominent investors, including RTP Global, BEENEXT, Shastra VC, and Falcon X. The company also benefits from strategic support through its South Korean partner JASTECH, which brings added expertise in advanced battery technologies. Priyadarshi Panda, CEO of IBC, emphasized that this partnership is designed to address the specific needs of Indian original equipment manufacturers (OEMs) and consumers. “Energy independence is crucial for India, and lithium-ion cells are at the heart of this goal. Through our collaboration with MGL, we aim to deliver battery cells that are ‘Made in India and for India,’ tailored to meet local demand.”
By leveraging MGL’s strengths and deep roots in India’s energy sector, the joint venture seeks to establish a self-reliant supply of lithium-ion cells, supporting both the country’s mobility solutions and its ambitious energy storage goals.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
