LG Energy Solution (LGES) from South Korea and India’s JSW Energy are currently in talks to establish a joint venture for manufacturing batteries for electric vehicles and renewable energy storage. The venture is anticipated to involve an investment exceeding $1.5 billion and is at the negotiation stage, with an initial agreement for an equal partnership.
In this collaboration, LGES will provide the technology and equipment for battery production, while JSW Energy will make the financial investment. The plan includes the construction of a battery plant in India with a capacity of 10GWh, of which JSW Energy is expected to utilize about 70% for energy storage and electric vehicles.
According to a source quoted by Reuters, “LGES wanted a partner in India and JSW is interested because it is coming up with its own brand of EVs starting with buses and trucks, and later on cars.”
The agreement is currently non-binding, with both companies aiming to finalize the discussions in the coming months. The plant is projected to commence operations by the end of 2026.
This joint venture signifies a strategic move for LGES, a prominent battery supplier to global automakers like Tesla, General Motors, and Hyundai. By establishing a manufacturing presence in India, LGES aims to capitalize on the country’s expanding EV market, where it already supplies batteries to e-scooter manufacturers such as Ola Electric and TVS Motor.
On the other hand, for JSW Energy, this partnership builds upon its previous stake in MG Motor’s India unit, following its collaboration with China’s SAIC Motor. JSW Energy is also exploring opportunities with other battery manufacturers as part of its broader strategy to develop its own EV brand and expand its footprint in the automotive sector.
The collaboration between LG Energy Solution and JSW Energy holds significant promise for the growth of the electric vehicle and renewable energy storage sectors in India, positioning both companies to leverage their strengths and contribute to the country’s sustainable energy transition.
