Honda Joins Hands with OMC Power to Repurpose EV Batteries for Clean Energy Storage and Rural Electrification in India – EQ
In Short : Honda Motor Co. has acquired a minority stake in India’s OMC Power to jointly develop clean energy battery systems using repurposed EV batteries. Starting 2026, OMC will reuse Honda’s detachable batteries for stationary energy storage. The partnership promotes circular economy practices, strengthens rural electrification, and supports Honda’s global carbon-neutral and sustainability goals in India.
In Detail : Honda Motor Co. has taken a significant step toward expanding its clean energy footprint in India by acquiring a minority stake in OMC Power. The collaboration focuses on developing innovative battery energy storage systems that repurpose used electric vehicle (EV) batteries, reinforcing both companies’ commitment to sustainability and circular economy principles.
Under this partnership, OMC Power will utilize Honda’s detachable batteries, originally used in electric two-wheelers and three-wheelers, for stationary energy storage applications. This initiative, expected to begin operations by January 2026, will enable the reuse of EV batteries that still retain substantial capacity after vehicle life cycles.
The companies aim to leverage this technology to create distributed energy solutions for rural and semi-urban regions in India. These systems will help power telecom towers, microgrids, and community facilities, bringing reliable and clean electricity to remote areas that currently depend on diesel generators.
While the financial details of Honda’s investment have not been disclosed, industry insiders estimate the stake to be between 5% and 10%. With this move, Honda joins Mitsui & Co. and Chubu Electric Power, two other Japanese firms that already hold major stakes in OMC Power, consolidating Japanese participation in India’s renewable sector.
OMC Power operates over 500 renewable energy plants across northern and central India, providing solar, wind, and battery-based power solutions. The company’s expertise in distributed clean energy infrastructure makes it a strong partner for Honda’s sustainability-driven ventures beyond the automotive sector.
Through this alliance, OMC Power plans to expand its clean energy capacity to nearly one gigawatt over the next three years. It aims to raise around ₹25–30 billion in debt financing to accelerate this goal, with a major focus on rural electrification, energy access, and carbon reduction across India.
For Honda, this marks its first major foray into India’s distributed energy landscape. The initiative aligns with its global carbon neutrality target for 2050 and reinforces its strategy of expanding the reuse of batteries from mobility products into other energy applications, promoting resource efficiency.
By giving a second life to EV batteries, the partnership not only reduces waste but also lowers the cost of clean energy systems. This approach supports both India’s decarbonization mission and Honda’s ambition to contribute meaningfully to sustainable development in emerging markets.
The collaboration between Honda Motor and OMC Power represents a convergence of technology, innovation, and social impact. It showcases how global corporations and Indian enterprises can join forces to accelerate energy transition, build rural resilience, and advance toward a cleaner, self-sustaining future powered by renewable energy.
