Mahanagar Gas Limited (MGL) entered a share subscription agreement (SSA) and a shareholding agreement (SHA) with International Battery Company, Inc. (IBC US).
The partnership aims to create a joint venture by jointly investing in International Battery Company India Private Limited (IBC), currently a fully owned subsidiary of IBC US.
This decision follows a non-binding term sheet signed between the companies on October 7, 2024.
MGL and IBC US will establish a cutting-edge lithium-ion cell manufacturing facility in Bangalore to meet India’s growing demand for energy storage solutions.
Lithium-Ion Cell Development
IBC US has been at the forefront of lithium-ion cell technology. It operates a state-of-the-art pilot facility in Seoul, South Korea, where it focuses on developing and producing prismatic NMC cells designed specifically for India’s needs.
The company’s cells have received essential certifications, including UN 38.3, BIS, and AIS, ensuring compliance with global standards.
IBC US developed these cells with features crucial for the Indian market, such as long warranty periods, rapid charging capabilities, enhanced safety, reliable performance in high temperatures, recyclability, and seamless integration into battery packs.
These cells are currently undergoing customer qualification trials with Indian partners, underscoring IBC’s commitment to adapting its technology for India.
Technologically Advanced Plant
To address the needs of the Indian market, MGL and IBC US will establish a state-of-the-art giga factory in Bangalore.
The facility, which will initially produce prismatic NMC lithium-ion cells, aims to cater to the mobility and battery storage sectors in India.
MGL plans to acquire at least a 40% stake in IBC, reinforcing its commitment to the venture.
Notably, the plant will be technology-agnostic, allowing flexibility for future developments and innovations in energy storage technology.
The Commitment
Ashu Shinghal, MD, MGL said, “MGL has long been a leader in India’s energy landscape as a prominent city gas distribution company.ogas (CBG), and electric vehicle (EV) manufacturing align with our vision for a cleaner future. This entry into battery cell manufacturing further strengthens our role in the renewable energy sector. Working with IBC US will allow us to establish an indigenous supply of battery cells. Currently, India relies on imports for these cells. This collaboration will boost India’s competitiveness and contribute to the ‘Make in India’ initiative.”.
IBC’s Vision
IBC’s CEO, Priyadarshi Panda, added, “IBC is a global leader in lithium-ion cell production with cutting-edge expertise in prismatic cell development. Backed by investors like RTP Global, BEENEXT, Shastra VC, Falcon X, and JASTECH, we have designed our market-ready product. It is tailored to address the unique challenges of Indian consumers and OEMs. Our collaboration with MGL marks a significant step towards creating one of India’s first giga factories for the advanced prismatic form factor. This will reduce reliance on imports and secure the lithium-ion supply chain. It is crucial for India’s journey towards energy independence.”
Pioneering Cell Manufacturing
MGL’s robust infrastructure and extensive experience in scaling energy production and operations in India form the foundation of this collaboration. IBC’s leadership in advanced battery technology also plays a key role. It promises to create significant impacts.
As reported by indianpsu.com, the partnership will support India’s ambitions for clean, self-sufficient energy solutions. The venture sets a new precedent for indigenous battery cell production. It is poised to benefit millions of consumers and strengthen India’s energy independence.
