Gist – Honda Motor has acquired a stake in India’s OMC Power to jointly develop clean energy storage batteries, marking its entry into India’s distributed clean energy sector. As part of the deal, OMC Power will repurpose Honda’s detachable batteries from electric vehicles for clean energy storage, a project starting in January 2026 that will extend the lifecycle of used EV batteries to power small businesses and rural homes. The investment will support OMC’s plan to build 1 gigawatt of distributed clean energy, and with other Japanese firms Chubu and Mitsui, the trio now holds about 70% of the Indian company, which is also seeking significant debt financing to fund its expansion.
In a strategic move to expand its footprint in the renewable energy sector, Honda Motor has acquired a stake in Indian distributed clean energy company OMC Power. The collaboration aims to jointly develop clean energy storage batteries, marking Honda’s entry into India’s distributed clean energy industry. Read Press Release here.
with Honda Mobile Power Pack e: (Source: Global Honda)
While OMC Power did not disclose the exact size of Honda’s stake or financial details, the company revealed that Japanese firms now hold a significant share in its operations. According to OMC Power Chief Executive Rohit Chandra, Chubu Electric Power holds slightly over 30%, Mitsui & Co. owns more than 26%, and with Honda’s addition, the three Japanese companies collectively control about 70% of the firm.
Comments by Minoru Kato, Chief Officer for Motorcycle and Power Products Operations, Head of Motorcycle Business Unit, and Executive Officer of Honda Motor Co., Ltd.
“Honda believes that electrified mobility products can contribute not only as a means of transportation but also to the advancement of energy systems for our customers and their local communities. In India, where the shift toward electric motorcycles is progressing, Honda will strive to establish a resource-circulating value chain by facilitating the repurposing of end-of-life electric motorcycle batteries. Through this initiative, with a comprehensive approach from the perspective of both our products and business activities, Honda will contribute to addressing societal issues and making people’s daily lives more enjoyable.” – Source: Global Honda
Comments by Rohit Chandra, Co-Founder & CEO, OMC Power Private Limited
“This partnership with Honda marks a pivotal moment in OMC’s journey. Together, we are unlocking a new era of sustainable innovation by integrating innovative energy storage solutions into our distributed energy systems. This model reflects the vision of Make in India and Aatma Nirbhar Bharat, driving local innovation, strengthening energy security, and enabling inclusive growth. By combining global expertise with India’s entrepreneurial spirit, we are building scalable solutions that will shape the future of storage based clean energy solutions.” – Source: Global Honda
To support its ambitious growth plans, OMC Power is also seeking to raise between 25 billion and 30 billion rupees (approximately $284 million to $341 million) in debt over the next three years. The company is currently in discussions with the State Bank of India and several international lenders.
The funds from Honda’s investment and the planned debt financing will be used to develop 1 gigawatt of distributed clean energy capacity within the next three years. Distributed energy systems provide power on a smaller scale to specific sites or communities and can operate either connected to or independently from the main power grid.
For the leasing business, Honda Power Pack Energy India Pvt. Ltd. (HEID), a Honda subsidiary in India conducting a battery sharing service, will supply OMC Power with the Honda Mobile Power Pack e:. Then OMC Power will package Honda Mobile Power Pack e: with its UPS device and offer it for lease sales to households, small businesses and schools and other facilities.
With this UPS device, the battery will be charged with grid electricity when available, then the charged battery will supply electricity when the grid power is unstable or down, enabling customers to use electricity more stably without interruption.
OMC Power currently operates more than 500 renewable energy plants across northern and central India, supplying electricity via mini-grids and battery storage to telecom companies, healthcare providers, small and medium-sized businesses, and rural households.
A key aspect of the partnership involves repurposing Honda’s detachable and portable batteries—originally designed for electric two- and three-wheeler vehicles—for use in clean energy storage. Starting in January 2026, the initiative will extend the lifecycle of used electric vehicle (EV) batteries by deploying them to provide reliable power to SMEs and rural homes.
This project underscores a growing trend of leveraging second-life EV batteries for sustainable energy solutions, supporting both decarbonization goals and energy access in underserved regions.
The deal was reported by Komal Salecha in Bengaluru and Sethuraman NR in New Delhi, with edits by Ronojoy Mazumdar and Sonia Cheema.
Source: Reuters Sustainable Switch
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