Mahanagar Gas Ltd. will form a joint venture with US-based International Battery Co. on Thursday to manufacture lithium-ion batteries in India, according to an exchange filing.
MGL signed a share subscription agreement and a shareholding agreement with the battery firm to invest Rs 230 crore in International Battery Company India Pvt., which is currently a 100% subsidiary of IBC. MGL intends to take at least 40% stake in IBC India, it said.
To address the local market requirement, IBC and MGL are setting up a giga factory in Bengaluru. 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, according to the filing.
Also Read: Indraprastha Gas And Mahanagar Gas' Margin Pain Likely To Continue In Near Term—Here's Why
MGL has already committed investments in liquified natural gas, retail, compressed biogas and electric vehicle manufacturing, Managing Director Ashu Shinghal said. "Foray into battery cell manufacturing will strengthen its position in the evolving energy space, which aligns with MGL's objective of a cleaner future."
Li-ion cell has been 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. The cells are currently being used for customer qualification trials with Indian customers.
"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," Priyadarshi Panda, chief executive officer of IBC Inc, said
Shares of MGL closed 0.21% higher at Rs 1,437.65 apiece on the NSE, compared to a 1.16% decline in the benchmark Nifty 50.
RECOMMENDED FOR YOU
Bids For KSK Mahanadi Power Skyrocket After Adani's Offer
Oct 26, 2024
Mahanagar Gas, IRM Energy Share Prices Fall After Regulator Mulls Exclusivity Removal
Oct 25, 2024
Mahanagar Gas Q2 Results: Profit Falls 2%, Margin Contracts 310 Basis Points
Oct 24, 2024
IGL, MGL To Pass Higher Costs On To Customers As GAIL Cuts APM Gas Allocation
Oct 17, 2024
POPULAR