JSW In Talks With LG Energy For EV Battery Production In India
JSW is reportedly engaged in preliminary discussions with South Korea's LG Energy Solution (LGES) on potential collaboration in battery manufacturing in India, according to two insider sources cited in a Reuters report.
These talks unfolded after JSW met with senior LGES executives in South Korea earlier this month. The primary focus of these discussions is the joint production of battery cells for electric vehicles (EVs) and energy storage, as part of JSW's broader strategy to establish a local EV manufacturing presence.
Additionally, JSW is exploring similar opportunities with other prominent battery manufacturers, including China's Contemporary Amperex Technology Co. Limited (CATL) and Japan's Panasonic and Toshiba. The objective is to cultivate a robust domestic supply chain for EVs. LGES, a major supplier of battery cells to leading automakers such as Tesla and General Motors, has requested JSW to provide detailed specifications for its EV and energy storage requirements.
JSW's EV plans include the establishment of a battery production facility capable of producing 20 gigawatt hours (GWh) of capacity in phases by the end of this decade. The initial phase is slated to commence with eight GWh of production capacity. JSW's chairman, Sajjan Jindal, has publicly expressed a keen interest in venturing into the EV sector and has explored the possibility of acquiring a stake in China's MG Motor.
However, conversations with MG Motor have been relegated to the background as JSW engages in discussions with Chinese automaker Leapmotor to secure technology licensing for indigenous EV manufacturing. Panasonic has declined to comment on its involvement, while Toshiba has stated it is unable to confirm any ongoing talks regarding a partnership for battery cell production. CATL has not responded to inquiries.
India's EV market, though relatively modest in size, is steadily expanding. Tata Motors, a domestic manufacturer, dominates the sales landscape. Last year, electric vehicles accounted for less than 2 per cent of total automobile sales. However, Prime Minister Narendra Modi's government has set a target to elevate this figure to 30 per cent by the year 2030. To incentivise local battery and EV component production, the government is offering substantial financial incentives and is crafting a new EV policy that promises reduced import taxes in exchange for investments in local manufacturing.
Tesla is also eyeing the Indian market and is actively engaged in discussions with the government regarding potential EV and battery production initiatives.
Furthermore, LGES, which already supplies imported battery cells to India's leading electric scooter manufacturers, Ola Electric (backed by SoftBank Group) and TVS Motor, is exploring potential collaborations with additional Indian companies.
(Inputs from Reuters)
