Mahanagar Gas Limited (MGL), a natural gas company, has announced its decision to invest Rs 2.3 billion in International Battery Company (IBC) India. The funds will be utilized to develop a gigafactory in Bengaluru which will manufacture prismatic NMC Li-ion cells. These cells have extensive applications in the mobility and battery storage sectors. The partnership also aims to address the growing demand for locally sourced battery cells in India, which are currently being imported.
MGL has inked a share subscription agreement and a shareholding agreement with IBC US to establish a joint venture company which will be formed by IBC India. The subscription of shares will be in a ratio of 44 per cent to 56 per cent by MGL and IBC US respectively. This is accepted subject to the completion of conditions precedent and obtaining relevant regulatory approvals. IBC US will bring their expertise to the partnership. A pilot facility has been established in Seoul, South Korea, to develop and produce Li-ion cells.
