The company is negotiating with leading battery manufacturers for a technology partnership to establish the cell manufacturing plant.
JSW Group, having acquired a 35% share in MG Motor India, aims to enhance its cell and battery production capabilities at a planned facility, aiming for a capacity of 50 GWh between 2028 and 2030, as reported by knowledgeable sources.
The group has laid out a phased approach for its cell and battery production initiative. Initially, it aims to achieve a capacity of 10 GWh by 2026 and plans to increase this to 50 GWh in a subsequent phase.
In February, JSW Group formalized an agreement with the Odisha government to establish a project in Cuttack and Paradip, with a Rs 40,000 crore commitment, in an effort to strengthen its manufacturing base for electric vehicles and batteries.
The focus of the battery cell production will primarily serve the group’s own requirements for its electric vehicles and various battery energy storage projects. JSW Group operates JSW Green Mobility, an electric vehicle subsidiary, and JSW BSS, a battery storage systems subsidiary.
Additionally, it has been reported that JSW Group is currently negotiating with leading battery manufacturers to form a technological partnership in cell and battery production.
India’s journey into lithium-ion battery manufacturing is still in its early stages, a sector essential for electric vehicles and renewable energy storage systems. The nation currently relies on imports predominantly from China, Japan, and South Korea for these batteries.
It is anticipated that by the end of the decade, India’s battery production capacity could reach between 110 and 1500 GWh. To support this growth, the government has introduced an Rs 18,100-crore production-linked incentive (PLI) scheme aimed at establishing advanced chemistry cell (ACC) production facilities in India, with an objective of hitting a 50 GWh production capacity.
Local battery production is likely to support the uptake of electric vehicles by localizing the supply chain. Battery expenses account for about 40% of an electric vehicle’s cost, and the high acquisition cost, largely due to the battery, is considered a significant barrier to the adoption of electric vehicles in India.
JSW Neo Energy, the renewable energy arm of JSW Group, was one of seven bidders for a 10 GWh capacity under the government’s PLI scheme for advanced chemistry cells, though this capacity was ultimately granted to Reliance Industries Ltd.
In addition to JSW Group, several other firms, including Ola Electric, Reliance Industries, Amara Raja, Exide Industries, GODI India, and Rajesh Exports, are advancing their plans to establish giga factories for battery cell production in India.
Reliance Industries’ battery Gigafactory, expected to begin operations in the latter half of 2025, will initially focus on assembling battery systems and packs before expanding into cell manufacturing and chemical production.
Amara Raja recently revealed a technological alliance with Gotion High-Tech, granting it access to Gotion’s technology for producing cells in both cylindrical and prismatic shapes.
