Whalesbook
OMC Power Taps Honda for EV Battery Second Life Initiative
OMC Power has initiated a significant venture into the repurposing of electric vehicle (EV) batteries, a move poised to address a critical intersection of India's renewable energy ambitions and waste management challenges. Through a strategic alliance with Honda Motor Co., Ltd., the company will transform used EV batteries into viable energy storage systems. This collaboration, solidified by Honda's acquisition of a minority stake in OMC Power on October 27, 2025, marks a pioneering effort in India to harness the residual capacity of EV batteries for stationary power applications. The partnership is set to commence operations in January 2026, aiming to meet the growing demand for stable, clean energy solutions across diverse market segments in India.
Strategic OEM Battery Supply
The core of this initiative lies in OMC Power's direct access to a consistent supply of EV batteries from Honda. Following three years of use in Honda's electric two- and three-wheeler vehicles, these batteries will undergo repurposing by OMC Power, potentially extending their operational life by an additional seven years [1]. This arrangement bypasses the typical challenges faced by recyclers in sourcing materials and provides OMC Power with high-quality, OEM-grade components for its energy storage systems. Honda anticipates producing approximately six million EV batteries annually for repurposing in the coming years, indicating a substantial scale for this venture [1]. This strategic integration is a departure from general battery recycling, focusing instead on a structured second-life application enabled by a direct OEM partnership.
Tapping India's Energy Storage Demand
The repurposed batteries will primarily fuel Uninterrupted Power Supply (UPS) systems for homes and commercial entities, offering a sustainable alternative to traditional diesel generators. They are also designed to enhance hybrid rooftop solar installations, a segment OMC Power is actively developing. India's energy storage market is projected for significant growth, expected to reach $947.4 million by 2032, driven by the imperative to integrate intermittent renewable energy sources and enhance grid stability [4]. OMC Power's initiative aligns with this trend, offering cost-effective energy storage solutions that support both grid resilience and consumer energy independence. Early pilot projects, including one supporting a school's solar rooftop in Hardoi, Uttar Pradesh, have demonstrated positive customer experiences and the viability of this approach [1].
Competitive Positioning and Regulatory Tailwinds
OMC Power enters a nascent but rapidly developing market for EV battery repurposing and recycling in India. Competitors such as Lohum Cleantech, Attero Recycling, and PeakAmp are already active in battery recycling and second-life applications [8, 26]. However, OMC Power's direct OEM partnership with Honda provides a distinct advantage in securing a high-volume, consistent supply of batteries specifically designed for energy storage. This initiative is further supported by India's Battery Waste Management Rules, 2022, which mandate Extended Producer Responsibility (EPR) for manufacturers and set targets for battery collection and recycling efficiency, fostering a circular economy [2, 13, 15]. These regulations create a favorable environment for companies like OMC Power that are developing robust battery lifecycle management solutions.
The Bear Case: Scaling and Technological Risks
Despite the promising partnership, the venture faces inherent challenges. Scaling battery repurposing operations to meet anticipated demand requires significant capital investment and sophisticated logistics for handling and reconditioning used batteries. While Honda's supply is secured, future market dynamics for EV batteries and the development of new battery technologies could impact the long-term viability of repurposed units. Furthermore, ensuring consistent performance and safety standards for second-life batteries in diverse stationary applications necessitates stringent quality control. The success of OMC Power's 1 GWp renewable portfolio target, which includes ₹4,000 crore investment, hinges on effectively integrating these repurposed batteries and managing their lifecycle, a task complicated by the evolving regulatory landscape and the need for advanced material recovery processes should repurposing reach its end-of-life. While Rohit Chandra has a strong background in telecom and renewable energy infrastructure, the company, as a private entity, lacks the public market scrutiny that might otherwise highlight operational or financial risks associated with such large-scale, innovative projects [5, 27].
Future Outlook
OMC Power's strategic move to repurpose Honda's EV batteries positions it to capitalize on India's growing energy storage market. The company's ambition to build a 1 GWp renewable energy portfolio by 2030, with a significant portion dedicated to healthcare clients and telecom infrastructure, provides a robust framework for deploying these energy storage solutions [11, 30]. The January 2026 launch of its UPS leasing business signals a clear path toward monetizing this technology. As India continues its push towards electric mobility and renewable energy integration, OMC Power and Honda's partnership is well-placed to become a significant contributor to the nation's sustainable energy future.