South Korea’s LG Energy Solution (LGES) is in discussions with India’s JSW Energy to establish a joint venture for manufacturing batteries for electric vehicles (EVs) and renewable energy storage, according to two sources familiar with the matter. The proposed venture would require an investment of over $1.5 billion.
Under the terms of the agreement, LGES would contribute technology and equipment for battery production, while JSW would invest the necessary capital. The joint venture is expected to set up a plant in India with a total capacity of 10 gigawatt hours. JSW plans to use approximately 70% of this capacity for energy storage and electric vehicles, with LGES taking the remaining share. The companies have signed an initial agreement, but the deal remains non-binding, with final discussions expected to conclude in the coming months.
“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,” one source said.
The venture represents a significant move for LGES, which supplies batteries to major automakers like Tesla, General Motors, and Hyundai. It would also expand LGES’s footprint in India, where it already supplies batteries to e-scooter makers like Ola Electric and TVS Motor. For JSW, the joint venture offers an opportunity to secure local battery supplies for its energy business and reduce costs for its upcoming EVs. The company is also engaged in other talks with battery suppliers, though it has proposed a 25-year agreement to LGES.
Both companies are aiming to have the plant operational before the end of 2026, with a final decision expected within 3 to 4 months. The joint venture would be a boost for India’s push to increase local manufacturing of clean energy products, supported by government incentives for companies investing in EV production.
Source: Reuters
