New stock has entered the Electric Vehicle Ecosystem, i.e. Indian Oil Corporation Ltd. This stock was well known in the traditional-fuel market but now it has made an entry in the EV segment in making batteries. Through which ways IOCL made entry into the EV Space and how this will impact the EV segment as a whole, know it all, in this short article.
Indian Oil Corporation Ltd. has joined hands with Israel based start-up "Phinergy" through the means of a Joint Venture. Phinergy makes Aluminium-based Air Batteries for vehicles and we can expect a new plant to be set up in India anytime soon.
In India, a lot of focus is given to Lithium-ion Batteries and they can be seen as a tough competitor to Aluminium Air Batteries. These batteries have greater efficiencies. However, there are some Pros and Cons of the Aluminium Air Batteries over the Li-ion Batteries which are discussed below:
Pros over Li-ion Batteries:
Cons over Li-ion Batteries:
Current Valuation of IOCL:
The Aluminium Air Batteries can give tough competition to Li-ion batteries as they are more efficient and provide a long range. But the replacement task after a certain distance can turn out to be cumbersome as Li-ion batteries can be easily charged at home without replacement. They have challenges but turn out to be widely accepted if implemented properly. By this development, IOCL has made its entry into the EV space and it will be an interesting thing to watch how things will go for the company from this point. Do not invest based on this news. This stock can be on one’s radar for the long-term view but need to be watchful about developments in the business. Consult your financial advisor before investing.