Honda Motor acquires stake in India's OMC Power to develop clean energy batteries
The logo of Honda is pictured in Cuautitlan Izcalli, Mexico, January 30, 2025 REUTERS/Raquel Cunha
NEW DELHI/BENGALURU :Indian renewables firm OMC Power, backed by Japan's Mitsui & Co and Chubu Electric Power, said on Monday that automaker Honda Motor has acquired a stake in the company to jointly develop clean energy storage batteries.
OMC Power did not disclose the size of the stake or financial details. The deal marks Honda's entry into India's distributed clean energy industry.
OMC Power Chief Executive Rohit Chandra said Chubu holds slightly over 30 per cent in the company, while Mitsui owns more than 26 per cent. Together with Honda, the three Japanese companies hold about 70 per cent of the firm.
The Indian company is also looking to raise about 25 billion to 30 billion rupees ($284.4 million-$341.3 million) in debt over the next three years and is in talks with State Bank of India and several international lenders, Chandra said.
The money raised from both Honda and through debt will go towards the company's plan to build 1 gigawatt of distributed clean energy in the next three years, Chandra said.
Distributed energy systems supply power to specific sites or areas on a smaller scale and can function either connected to or isolated from the wider grid.
OMC Power operates more than 500 renewable energy plants across northern and central India and supplies electricity to telecom companies, healthcare providers, small- and medium-sized businesses and rural houses via mini-grids and battery storage.
As part of the deal, OMC Power will repurpose Honda's detachable and portable batteries, originally used in electric two- and three-wheeler vehicles for storage-based clean energy.
The project will commence in January 2026 and will extend the lifecycle of used EV batteries by repurposing them to provide power to small and medium businesses and rural homes, the company said.
($1 = 87.8950 Indian rupees)
