JSW in talks with Japan, South Korea firms for India battery JV to cut China reliance

Mumbai: JSW Group is in advanced talks with Japanese and South Korean manufacturers to form a joint venture for battery cell manufacturing in India, said people aware of the discussions.

The diversified conglomerate is looking to safeguard supply chains for its new energy vehicles (NEV) business and lessen reliance on Chinese imports, that have become uncertain of late, the people said, adding that discussions are expected to conclude by March.

"India has already started producing several battery components domestically, but the cell remains the key," one of the persons said. "China has recently restricted exports of critical cell and anode technologies."

Serving multiple verticals

“That’s why the company has been holding parallel discussions with Japanese and Korean companies, both of whom are willing to establish manufacturing bases in India with them,” said the person cited earlier.

The proposed JV is being structured to serve multiple verticals within the JSW ecosystem, including NEVs (plug-in hybrid EVs, strong hybrids) grid-scale energy storage and renewables integration. The new entity could be housed under an existing group company or a new promoter-led entity, the people said. “A decision will be taken based on the strategic fit across the businesses,” a person said.

JSW has longstanding partnerships in both Korea and Japan, including with JFE Steel and Toshiba of Japan, which have helped the group deepen its industrial and technology collaborations.

“JSW is in advanced discussions on bringing cell technology from either Japan or Korea,” a second person said, noting that the partnership will be an equity alliance instead of a technical assistance or licensing arrangement.

A JSW Group spokesperson did not respond to email queries.

JSW’s electric vehicle ventures are central to this new strategy. JSW MG Motor India — a joint venture of China’s SAIC Motor and JSW Group — plans to expand its EV lineup to consolidate and grow its market presence. The automaker is currently the country’s second-largest electric carmaker, after Tata Motors.

Separately, JSW Motors, a wholly-owned subsidiary, is preparing to launch its own NEVs through licensing pacts with overseas automakers. An upcoming facility at Sambhaji Nagar in Maharashtra will produce these vehicles, including electric cars, battery packs and, eventually, battery cells.

JSW Motors plans to invest $3 billion over the next five years to develop the NEVs. The first vehicle will be ready to launch sometime in the second half of FY26, Rajan Nayak, chief executive of JSW Motors, said in recent media interviews.

The proposed cell manufacturing JV is expected to be a cornerstone of this integrated value chain, ensuring technology ownership and supply security for the group’s EV and energy storage operations, said the people cited.