JSW and LG Energy Solution may be negotiating to produce EV batteries in India

22 Sep 2023 , 10:41 AM

As it moves ahead with plans to produce electric vehicles locally, the Indian steel-to-energy business JSW is in preliminary discussions with Korea’s LG Energy Solution (LGES) about jointly manufacturing batteries in India, two people told Reuters.

One of the sources with firsthand knowledge of the conversations claimed that JSW met with senior LGES officials in Korea earlier this month and proposed a collaboration to produce battery cells for EVs and energy storage in India.

According to the second individual, who is knowledgeable about JSW’s EV strategy, the Indian company is also in talks with other battery players, including China’s CATL and Japan’s Panasonic and Toshiba, as it aims to establish a local supply chain for EVs.

The company hopes to set up a plant to create 20 gigawatt hours (Gwh) of battery capacity in phases by the end of this decade, starting with 8 Gwh in the first phase, according to a third source briefed on JSW’s EV ambitions.

The chairman of JSW, Sajjan Jindal, has publicly expressed his intention to produce electric vehicles and JSW’s discussions to acquire a stake in MG Motor of China.

According to sources who spoke to Reuters last month, talks with MG Motor have been put on hold, while JSW is in talks with Chinese automaker Leapmotor to licence technology to construct EVs in India under its own brand.

Panasonic chose not to respond. Toshiba claimed that ‘at this point’ it is unable to clarify whether it is in discussions with JSW for a joint venture to produce battery cells. An inquiry for comments from CATL was not answered.

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