Honda Motor Invests in OMC Power to Build Clean Energy Batteries in India

Honda Motor Co Ltd has taken a minority stake in India’s OMC Power, its first investment in a distributed energy company in the country, as per the news reports. 

The partnership will focus on developing clean energy storage systems by reusing electric vehicle (EV) batteries. Financial terms of the deal were not shared.

New Battery Leasing Plan

From January 2026, OMC Power plans to start a leasing service for uninterruptible power supply (UPS) systems powered by Honda’s Mobile Power Pack e: a portable and swappable battery. The batteries will be supplied by Honda Power Pack Energy India Pvt. Ltd., and the systems will be offered to households, schools, and small businesses.

Ongoing Pilot Testing

Since 2023, both companies have been testing the UPS system in Uttar Pradesh. The trials showed that old motorcycle batteries can be reused for power backup instead of being discarded. These units will charge when the grid is active and provide electricity during outages.

Japanese Shareholders

OMC Power’s existing investors include Mitsui & Co. with a 26% stake and Chubu Electric Power with about 30%. With Honda joining, Japanese investors now hold around 70% of the company. The firm did not disclose how much Honda invested.

Expansion and Funding

OMC Power plans to raise ₹25-30 billion in debt over the next 3 years and is in talks with State Bank of India and international lenders. The funding will help the company build 1 gigawatt (GW) of distributed clean energy capacity in the next 3 years.

Operational Capacity

The company operates more than 500 renewable energy plants in northern and central India. It plans to build 600 MWp rooftop solar for healthcare, 200 MWp for telecom, 100 MWp for rural smart grids, and 100 MWp for MSME and industrial clients.

Read More: Ola Electric Launches Open Hyperservice Platform for Spare Parts and EV Servicing!

Conclusion

Honda’s entry will support OMC Power’s plan to expand battery-based clean energy projects and build a 1 GW portfolio across several Indian states.

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