IndianOil, India's largest oil refiner and retailer, has been working for years to bolster its non-oil businesses through investments in petrochemicals and natural gas. As the global fight against climate change intensifies, the state-run company is adding renewable energy and batteries to its portfolio.
Indian Oil has signed a strategic agreement with Japan's Panasonic Energy to explore opportunities for manufacturing lithium-ion battery cells in India.
“With a vision to drive 'Make in India' globally, the joint venture has ambitious plans to set up a factory with a production capacity of 1GWh by 2027 and scale up to 5GWh by 2031,” chairman Shrikant Madhav Vaidya said in the company's FY24 annual report. “The partnership aims to position India as a global hub for advanced battery technologies and support the country's transition towards sustainable energy and transportation solutions.”
IndianOil is also focusing on setting up more battery-swap facilities and electric vehicle charging centers, leveraging its extensive network of fuel retailers.
“We are betting big on the promising avenues of battery swapping solutions, especially in the two-wheeler and three-wheeler segments, with plans to extend this to heavy vehicle applications,” Vaidya said. “This approach will be a game changer for the sector.” Vaidya said Indian Oil aims to build 31 GW of renewable energy capacity by 2030, mainly through solar and wind projects. However, the company will continue to expand its core fossil fuel business as it expects domestic oil demand to grow over the next decade. The company plans to add 17 million tonnes/year of capacity through expansion of its refineries at Barauni (6-9 million tonnes/year), Panipat (15-25 million tonnes/year) and Vadodara (13.7-18 million tonnes/year).