LG & JSW in talks for a battery gigafactory in India
According to Reuters, LG Energy Solution and JSW Energy are considering a jointly owned manufacturing facility to make batteries for EVs and energy storage systems in India. The South Korean battery maker and the Indian power company are looking at an annual production capacity of 10 GWh. They would need to invest more than 1.5 billion US dollars (1.4 billion euros) for this joint venture.
Without making any public announcements, LG Energy Solution and JSW Energy have signed a non-binding agreement to form a 50:50 partnership. The former will bring the technology and equipment for manufacturing batteries, while the latter will finance the project. JSW Energy wants to work with LG Energy Solutions under this joint venture for 25 years, although it is also considering partnering with other battery makers.
The two companies have been looking at potentially working together for a while. Negotiations apparently began back in 2023.
JSW Group reportedly plans to launch buses and trucks under its upcoming independent EV brand – even electric cars. The company will likely use about 70% of the total capacity, for both EVs and energy storage systems. As for LG Energy Solution, the potential joint venture allows it to expand its business in a market with a huge potential for electrification but remains nascent in the transition with lower capital investment and risk.
JSW Energy and LG Energy Solution expect to conclude the deal around March or April 2025. They aim to commence production at the joint venture battery plant by the end of 2026. The South Korean company already supplies batteries for the electric scooters of Ola Electric and TVS Motor in India.
Last year, JSW Energy and LG Energy Solution were considering a 20 GWh battery plant in India, Reuters said in an earlier report. Perhaps, following the slowdown in EV sales growth this year, the duo has reduced the targeted annual production capacity.
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