Mahanagar Gas To Enter Battery Manufacturing Through Joint Venture
Date
11/8/2024 2:11:04 PM
(MENAFN- KNN India)
New Delhi, Nov 8 (KNN) Mahanagar gas Limited (MGL) has announced plans to establish a joint venture with International Battery Company (IBC US) for manufacturing and distributing battery cells in India, marking its entry into the battery manufacturing sector.
According to a regulatory filing on Thursday, MGL has signed both share subscription and shareholding agreements with California-based IBC US.
The joint venture will operate through International Battery Company India Private Limited, currently a wholly-owned subsidiary of IBC US.
This development follows last month's announcement of a non-binding term sheet, where MGL proposed an investment not exceeding Rs 385 crore for a minimum 40 per cent stake in the venture.
IBC US, which operates a pilot facility in Seoul, South Korea, has already secured key certifications including UN 38.3, BIS, and AIS for their prismatic NMC cells.
The joint venture plans to establish a giga factory in Bangalore, designed as a technology-agnostic facility that will initially focus on producing prismatic NMC Li-ion cells for mobility and battery storage applications.
MGL Managing Director Ashu Shinghal emphasised that this venture aligns with the company's strategic expansion beyond its core city gas distribution business.
"MGL has already committed investments in LNG retail, CBG, and Electric Vehicle manufacturing. This foray into battery cell manufacturing strengthens our position in the evolving energy space," Shinghal stated.
The partnership aims to establish indigenous battery cell manufacturing capabilities in India, reducing dependency on imports and enhancing the sector's competitiveness.
The collaboration leverages IBC's global technical expertise and MGL's established presence in India's energy landscape.
(KNN Bureau)
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