In a strategic move to gain greater control over its electric vehicle (EV) supply chain, JSW Group is in discussions with Chinese and South Korean firms to acquire battery cell technology. This step is critical for the group’s EV ambitions, as battery cells remain the only major component not currently manufactured in India.

JSW Group, which entered the automotive sector in 2023 through its acquisition of a stake in MG Motor India, announced earlier this year its plans to invest in a lithium-ion battery manufacturing facility in Maharashtra. The plant will supply batteries for the company’s EVs, including models such as the MG ZS EV and Windsor, both currently adapted from Chinese platforms.

JSW Group chairman, Sajjan Jindal, spoke about the need to localise battery production, at a recent industry conference, highlighting how it was needed to secure a stable and cost-efficient supply. He stated that manufacturing the rest of the EV is relatively straightforward and can be done using components produced within the country. However, battery cells remain a gap in India’s EV ecosystem, prompting JSW to seek technology partnerships abroad. “We are already working on developing the cells with technology from China so that we can make these cells in India,” Jindal said.

In January, the group signed a memorandum of understanding with the Maharashtra government, pledging an investment of Rs 3 lakh crore. This includes not just the EV battery plant but also the broader production of electric vehicles. The initiative aligns with JSW’s goal to produce high-quality, technologically advanced cars at competitive prices, making EVs more accessible to the consumers.

JSW MG has already outlined its product strategy, planning to launch two new electric vehicles, the MG M9, a luxury multi-seater limousine, and the Cyberster, a sleek two-door roadster, by 2025. With a 28% market share, JSW MG currently stands as the country’s second-largest EV manufacturer, trailing only Tata Motors.

Jindal acknowledged the growing protectionist stance of countries like China but expressed confidence in sourcing technology from alternate regions. “The battery technology is not that complicated. It is available in Korea, Japan, and China. So, we are already in talks with Korean companies to develop these cells in India as well,” he said.

India continues to depend heavily on overseas suppliers, mainly from China, Japan, and South Korea, for battery technology. Although several domestic companies have announced plans to establish local cell manufacturing plants, full-scale production is not expected before the end of the decade.

A domestic battery cell production base could help reduce manufacturing costs significantly. This would not only make EVs more affordable for consumers but also improve the competitiveness of local manufacturers. Supporting this push, the government announced in the Budget import duty exemptions on 35 key components used in battery production, signaling its intent to accelerate the shift toward a self-reliant EV industry.