Mumbai: Mahanagar Gas Limited (MGL) signed a Share Subscription Agreement (SSA) and a Shareholding Agreement (SHA) with International Battery Company, Inc. (IBC US) on November 7, 2024 through which both parties will invest in International Battery Company India Private Limited (IBC) to form a joint venture company, which is currently a 100% subsidiary of IBC US. This is pursuant to the non-binding term sheet signed between the parties on October 7, 2024.
IBC US is based in California, USA. The company has put up a state-of-the-art pilot facility in Seoul, South Korea for development and production of Li-ion cell and has secured certifications such as UN 38.3, BIS, and AIS for their prismatic NMC cells.
This go to market product has been designed and developed with a focus on the specific requirements of the Indian market such as long warranty, fast charging, safety and reliable performance at high temperatures, recyclability, and easy integration into battery packs and are currently being used for customer qualification trials with Indian customers.
To address the local market requirement, IBC US and MGL are setting up a state-of-the-art giga factory at Bangalore. MGL intends to take at least 40% stake in IBC. The India facility will be a technology agonistic plant which will initially produce prismatic NMC Li-ion cells having wide application across mobility and battery storage sector.
Speaking on the occasion, Ashu Shinghal, Managing Director of MGL said, “MGL has established itself as a leading CGD company and a key player in India’s energy landscape. MGL has already committed investments in LNG retail, CBG and Electric Vehicle manufacturing. Forey into battery cell manufacturing will strengthen its position in the evolving energy space which aligns with MGL’s objective of a cleaner future. IBC has a capable and experienced team who has worked with leading technology companies globally. Through IBC, MGL and IBC US will set up a giga factory in India for Indigenous battery cell manufacturing. This will enable the consumers to source battery cells locally, which are currently being imported. thereby enhancing the competitiveness of the sector. We are excited to join hands with IBC US to cater to the growing requirement of battery cells in India thereby realizing “Make in India” objective of the Government.”
Priyadarshi Panda, CEO of IBC, Inc. said “IBC is a leading global Li ion cell product company with expertise at the cutting edge of prismatic product development and manufacturing. IBC is backed by some of the leading financial investors in India and the world such as RTP Global, BEENEXT, Shastra VC and Falcon X as well as a very strong strategic investor and partner from South Korea in JASTECH. IBC’s go to market product was designed specifically to address the pain points of the Indian OEMs and consumers. Energy independence is a key objective for any nation and more so India and Li ion cells are at the core of this objective. The partnership of IBC US and MGL in setting up one of India’s first giga factories around the future proof prismatic form factor will enable indigenous supply chain security of one of the key bottlenecks today in India’s journey towards energy independence while significantly reducing billions of dollars of forex expenditure. MGL is a visionary in the energy space as one of the first organizations in gas delivery in India touching and enriching the lives of countless people in India. The current management at MGL has continued that trend of thought leadership with a strong strategic foray into the renewables sector for a cleaner and greener India and the world. We are very excited to join forces with the MGL team to leverage the strengths of MGL’s proven scaling of production and operations in the energy sector in India with IBC’s leadership in prismatic product development around some of the most sophisticated chemistry backbones to bring Made in India and for India Li ion cells to consumers in India.”
