Natural gas company Mahanagar Gas (MGL) will invest ₹2.3 billion (~$27.2 million) in IBC India to establish a gigafactory in Bengaluru to manufacture prismatic NMC Li-ion cells, which have extensive applications across the mobility and battery storage sectors.

This partnership aims to strengthen India’s battery production landscape and support the transition to sustainable energy solutions.

MGL signed a share subscription agreement and a shareholding agreement with the International Battery Company (IBC US) to form a joint venture company.

International Battery Company India will establish the joint venture.

MGL and IBC US will subscribe to shares in a predetermined ownership ratio of 44% to 56%, subject to the completion of conditions precedent and obtaining relevant regulatory approvals.

IBC US, based in California, is expected to bring expertise to the partnership. The company has established a pilot facility in Seoul, South Korea, to develop and produce Li-ion cells.

The partnership also aims to address the growing demand for locally sourced battery cells in India, which are currently being imported.

Ashu Shinghal, Managing Director of MGL, said the company’s foray into battery cell manufacturing will strengthen its position in the evolving energy space.

Priyadarshi Panda, CEO of IBC,  emphasized the specific design of the company’s products to address the needs of Indian OEMs and consumers. He underscored the importance of energy independence for India and the role of Li-ion cells in achieving this objective.

In February, MGL announced the acquisition of a 30.97% shareholding in 3ev Industries, a manufacturer of three-wheel electric vehicles, for ₹ $960 million (~$11.56 million).

This came three years after MGL collaborated with Tata Power to explore the e-mobility segment and other value-added services of mutual interest, such as solar rooftop installations.