Honda Motor Invests in India’s OMC Power to Accelerate Clean Energy Battery Development
New Delhi — In a significant step toward advancing clean energy innovation, Honda Motor has acquired a strategic stake in India’s renewable energy company OMC Power.
The partnership aims to develop advanced clean energy storage batteries by repurposing used electric vehicle batteries, marking a major milestone in sustainable energy collaboration between India and Japan.
The investment highlights Honda’s growing commitment to green technology and aligns with its global vision to achieve carbon neutrality.
For OMC Power, the move represents a new phase of growth as it strengthens its position in India’s fast-evolving clean energy landscape.
The collaboration brings together three major Japanese corporations—Honda, Mitsui & Co., and Chubu Electric Power—who now collectively hold around 70% of the Indian renewable energy firm.
OMC Power Chief Executive Officer Rohit Chandra said that Chubu Electric holds slightly over 30% of the company, while Mitsui owns more than 26%.
With Honda joining the consortium, the combined expertise and financial backing of these global players are expected to fast-track OMC Power’s plans to scale up distributed clean energy generation across India.
The company has ambitious plans to raise between 25 billion and 30 billion rupees (approximately $285–$340 million) in debt over the next three years.
Discussions are currently underway with the State Bank of India and several international financial institutions to secure funding.
The capital, along with Honda’s investment, will help OMC Power achieve its target of developing one gigawatt of distributed renewable energy capacity by 2028.
Distributed energy systems are a cornerstone of India’s renewable energy expansion strategy. Unlike centralized grids, these systems supply power to smaller regions, businesses, or communities, and can operate independently if required.
This flexibility makes them particularly valuable in rural and semi-urban areas where grid connectivity remains limited.
OMC Power currently operates over 500 renewable energy plants across northern and central India. These plants provide reliable power to telecom towers, healthcare facilities, small and medium enterprises, and rural households.
Through its network of mini-grids and battery storage units, the company has become a key player in delivering decentralized energy solutions that support both economic development and environmental sustainability.
The new partnership with Honda takes OMC Power’s mission a step further. As part of the deal, the company will repurpose Honda’s detachable and portable batteries—originally designed for electric two- and three-wheelers—for use in clean energy storage systems.
These repurposed batteries will provide affordable and sustainable power to small businesses and rural communities, extending the lifespan of existing battery technology and reducing environmental waste.
The initiative is scheduled to begin operations in January 2026 and represents a breakthrough in how electric vehicle batteries can be reused to power homes and enterprises.
By giving used EV batteries a second life, the project supports the circular economy, reduces dependency on fossil fuels, and lowers carbon emissions.
Industry analysts view Honda’s investment as a strategic entry into India’s distributed clean energy sector, which is poised for rapid growth.
India’s commitment to achieving net-zero emissions and expanding renewable capacity has created fertile ground for global investors seeking sustainable energy opportunities.
Honda’s expertise in electric mobility, combined with OMC Power’s local operational experience, could pave the way for scalable, cost-effective clean energy solutions tailored to India’s unique needs.
The partnership also reflects Japan’s broader engagement in India’s clean energy transition. With Mitsui, Chubu, and Honda working together, OMC Power gains access to advanced technology, global best practices, and a strong network of international partnerships.
This collaboration is expected to drive innovation in energy storage, enhance grid reliability, and expand access to clean electricity in remote parts of the country.
As the world accelerates efforts to combat climate change, initiatives like this underline the power of cross-border collaboration in building a sustainable energy future.
By combining India’s growing renewable infrastructure with Japan’s technological leadership, the Honda–OMC Power partnership sets a strong example of how global cooperation can deliver both environmental and economic benefits.
