MGL ventures into battery cell manufacturing, plans giga factory in Bengaluru

City gas distribution company Mahanagar Gas (MGL) has signed a pact with America's International Battery Company to form a joint venture to foray into battery cell manufacturing, the company informed on November 7.

MGL will be investing an aggregate sum of Rs 230 crore, with MGL and IBC subscribing in the agreed proportion of 44:56 shareholding percentage, respectively. The JV is setting up a state-of-the-art giga factory in Bengaluru, and MGL said it 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," the company said in a statement.

This move strengthens MGL's position in India's energy space, the company said. "MGL and IBC US will set up a giga factory in India for Indigenous battery cell manufacturing," Ashu Shinghal, Managing Director of MGL said. The initiative aligns with the 'Make in India' theme and aims to reduce import dependence for battery cells aside of boosting energy security.

MGL said it will engage in manufacturing, promotion, marketing, distribution and sale of battery cells in India through this JV. MGL will appoint two directors and IBC US shall appoint three directors on the Board of IBC India.