LGES, JSW plan $1.5 billion battery venture in India
The 2 companies have inked an initial agreement to form an equal partnership in which LG Energy Solution will contribute the tech and equipment for making batteries and JSW Energy will invest money.
LG Energy Solution is reportedly in talks with Indian steel-to-energy group JSW Energy to manufacture batteries for electric vehicles and renewable energy storage in a USD 1.5 billion joint venture.
The two companies have inked an initial nonbinding agreement to form an equal partnership in which LGES will contribute the technology and equipment for making batteries, and JSW will invest money, sources told Reuters.
The plan includes setting up a 10 gigawatt hours plant in India. JSW is likely to use about 70% of that total capacity for energy storage and EVs, and the South Korean company will take the remainder, the report said.
The talks are expected to be finalized over the coming months.
LGES supplies batteries to Indian companies like e-scooter maker Ola Electric and TVS Motor.
India is seen as a relatively low-risk country for EV manufacturing since the sector is still in its infancy, the Reuters report indicated.
JSW last year formed a JV with SAIC Motor giving it a 35% stake in the Chinese carmaker’s India unit, MG Motor.
According to media reports, the Indian government is reportedly considering a ₹90 billion (nearly USD 1.1 billion) initiative to boost the domestic production of crucial battery components for electric vehicles (EVs) and clean energy systems.
The Ministry of Heavy Industries is spearheading the initiative, and consultations with stakeholders are ongoing, the Mint business newspaper reported a few weeks ago. If taken forward, the initiative could attract significant investment, reduce India’s dependency on battery imports, and position the country as a leader in battery production.
This month, Hyundai Motor India Limited (HMIL) signed a binding term sheet with Exide Industries’ subsidiary Exide Energy Solutions for the production and supply of battery cells for HMIL’s electric vehicles dedicated to the Indian market.
