Mahanagar Gas and IBC to build Rs 2.3 billion li-ion cell gigafactory


Mahanagar Gas (MGL) will invest Rs 2.3 billion in a joint venture with the International Battery Company (IBC US) to establish a gigafactory in Bengaluru for manufacturing prismatic NMC Li-ion cells. These cells are crucial for the mobility and battery storage industries and will contribute to India’s growing battery production capabilities.

The partnership, formed through a share subscription and shareholding agreement between MGL and IBC US, will see IBC India set up the joint venture. MGL and IBC US will each hold 44% and 56% of the shares, respectively, subject to regulatory approvals.

IBC US, based in California, will bring its expertise from a pilot facility in Seoul, South Korea, where it has been developing Li-ion cells. The initiative aims to meet the increasing demand for locally produced battery cells in India, reducing the reliance on imports.

MGL's Managing Director, Ashu Shinghal, highlighted that entering the battery manufacturing sector aligns with the company’s broader energy strategy. IBC CEO Priyadarshi Panda emphasized that the Li-ion cells are designed specifically to meet the needs of Indian OEMs and consumers, helping India achieve greater energy independence.

This move follows MGL’s February 2024 acquisition of a 30.97% stake in 3ev Industries, a manufacturer of three-wheel electric vehicles, and its previous collaboration with Tata Power to explore e-mobility solutions and solar energy initiatives. (Mercom)

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