India's top refiner Indian Oil Corp has entered a pact with Panasonic Energy to form a joint venture to manufacture lithium-ion cells in India, the refiner said in a statement on Sunday, to prepare for rising local demand.

The agreement follows an initial understanding between the two companies on lithium-ion cells in January.

Lithium-ion batteries, which power electric vehicles (EV) and are used to store energy, are expected to play a major role in India's goal to be a net zero emitter of greenhouse gases by 2070.

The country is expected to see sales of more than 10 million EVs a year by 2030, according to an annual Economic Survey.