Mahanagar Gas Limited (MGL), one of India’s leading city gas distribution companies, announced its strategic move into battery cell manufacturing by signing a Share Subscription Agreement (SSA) and Shareholding Agreement (SHA) with International Battery Company, Inc. (IBC US). This joint venture will result in the creation of International Battery Company India Private Limited (IBC India), a collaboration aimed at establishing one of India’s first giga factories dedicated to manufacturing prismatic lithium-ion (Li-ion) cells.
The SSA and SHA follow a non-binding term sheet signed by the two companies on October 7, 2024. Through this partnership, MGL will invest to secure a minimum 40% stake in IBC India, which will operate as a joint venture to support India’s growing demand for battery cells, primarily targeting the mobility and energy storage sectors. The upcoming giga factory will be located in Bangalore and is designed to be technology-agnostic, initially producing prismatic NMC (Nickel Manganese Cobalt) Li-ion cells.
IBC US, headquartered in California, has set up a pilot facility in Seoul, South Korea, for the development and production of Li-ion cells. Its prismatic NMC cells have received crucial certifications, including UN 38.3, BIS, and AIS, affirming their safety and suitability for the Indian market. With a focus on features such as long warranty, fast charging, and reliability at high temperatures, IBC’s products are currently undergoing qualification trials with Indian customers.
Ashu Shinghal, Managing Director of MGL, emphasised the importance of this venture in enhancing India’s energy landscape. “MGL has already committed investments in LNG retail, CBG, and electric vehicle manufacturing. Our foray into battery cell manufacturing strengthens our role in the evolving energy sector. The partnership with IBC aligns with our goal of a cleaner future and the ‘Make in India’ initiative,” Shinghal said. “By setting up this giga factory, we are not only creating a local supply chain for battery cells—which are currently imported—but also increasing the competitiveness of India’s energy sector.”
Priyadarshi Panda, CEO of IBC US, highlighted IBC’s expertise in Li-ion cell development, citing the company’s collaboration with leading global investors such as RTP Global, BEENEXT, Shastra VC, and Falcon X. IBC also enjoys a strategic partnership with JASTECH, a major South Korean investor.
“IBC’s products are tailored to address the specific needs of Indian original equipment manufacturers (OEMs) and consumers. This partnership with MGL enables us to establish a resilient, indigenous supply chain in India, significantly reducing forex expenditure and supporting energy independence,” Panda explained. “MGL’s extensive experience in scaling production and operations in India’s energy sector complements IBC’s expertise in prismatic cell development. Together, we aim to bring ‘Made in India’ battery cells to the Indian market.”
The collaboration between MGL and IBC marks a significant step towards reducing India’s dependence on battery cell imports, positioning the country as a key player in the Li-ion battery sector. The Bangalore facility will feature state-of-the-art manufacturing technology designed to accommodate various battery chemistries, furthering India’s energy goals and supporting sustainable development.
