MGL partners with US-based IBC for a ₹825 Cr EV battery plant & builds a ₹500 Cr biogas facility. Learn how this shift supports India’s clean energy future.
State-Run MGL Partners With US Firm to Build Giga Factory, Aims for Clean Energy Leadership
In a strategic shift toward sustainable energy, Mahanagar Gas Limited (MGL)—one of India’s leading city gas distributors—has announced plans to invest ₹1,325 crore over the next two years to establish an EV battery manufacturing unit and a compressed biogas (CBG) plant.
The move aligns with India’s push for cleaner mobility solutions and reduces MGL’s reliance on its core compressed natural gas (CNG) business, which currently contributes 70% of its revenue.
Key Investments & Expansion Plans
1. EV Battery Manufacturing – ₹825 Crore Joint Venture
MGL has formed a 56:44 joint venture with US-based International Battery Company (IBC) to set up a giga factory in Karnataka.
🔹 Phase 1 (1 GWh): Commissioning targeted by FY27
🔹 Phase 2 (Scaling to 5 GWh): Expected by FY28
🔹 Technology: Prismatic NMC lithium-ion battery cells for two-wheelers, three-wheelers, and energy storage
“If initial results are satisfactory, we can expand production to 5 GWh,” said Ashu Shinghal, MD, MGL.
2. Compressed Biogas (CBG) Plant – ₹500 Crore Project
MGL has partnered with Brihanmumbai Municipal Corporation (BMC) to set up a 1,000-tonnes-per-day (TPD) CBG plant in Maharashtra.
🔹 Feedstock: Segregated food & vegetable waste from BMC
🔹 Potential Use: Automotive fuel (Maruti Suzuki exploring CBG for vehicles)
Why This Move Matters for India’s Green Energy Transition?
✅ Reducing Fossil Fuel Dependency
With 70% revenue from CNG, MGL’s diversification into EV batteries and biogas ensures long-term sustainability as India shifts toward electric and biofuel-powered mobility.
✅ Strengthening India’s EV Supply Chain
The Karnataka giga factory will boost domestic lithium-ion battery production, reducing reliance on imports and supporting Make in India.
✅ Waste-to-Energy Innovation
The 1,000 TPD CBG plant will help manage urban waste efficiently while producing clean fuel, contributing to Swachh Bharat and renewable energy goals.
Industry Outlook & Future Growth
🔋 EV Battery Demand: India’s EV market is expected to grow at 36% CAGR, driving massive demand for local battery manufacturing.
🌱 CBG Potential: With automakers like Maruti Suzuki exploring biogas, MGL’s plant could become a key supplier for green fuel.
