Indian Oil, Sun Mobility sign agreement for setting up battery swapping network

6 Jun 2024 , 11:13 AM

Indian Oil Corporation stated that it has entered into a joint venture with Singapore’s Sun Mobility Pte Ltd. In a stock exchange statement, the state-owned oil and gas corporation announced that on June 5, 2024, it signed a joint venture (JV) agreement with Sun Mobility Pte Ltd Singapore for setting up battery swapping network.

Indian Oil informed the stock exchanges that the agreement will be a 50:50 domestic joint venture between the two firms.

Electric vehicle (EV) 2-wheeler and 3-wheeler categories are now experiencing exponential growth in India. According to the company’s press release, battery swapping technology is likely to be one of the most prominent energy distribution technologies in EVs.

According to the terms of the agreement, the JV will focus on two primary areas of business operations: the deployment and operation of Battery as a Service (BAAS) for two-, three-, and four-wheeled vehicles.

Each of these vehicles will have a gross vehicle weight of less than two tonnes, or Small Format Electric Vehicle (SFEV). The JV will also revamp to SFEV using docks and batteries, allowing them to operate as electric vehicles for SFEV-BAAS via a network of swap points that will include Indian Oil Retail Outlets.

The joint venture’s initial paid-up share capital will be ₹2 Lakh, consisting of 20,000 equity shares with a face value of ₹10 each, contributed equally by the two partners.

Furthermore, the deal would include and run the Battery Swapping Business connected to the deployment and operation of BAAS for SFEVs in India, Indian Oil noted in an exchange filing on Wednesday.

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