LG Energy Solution and JSW Energy have signed a preliminary agreement to establish an equal partnership joint venture to produce batteries for electric vehicles and renewable energy storage. The JV would require an investment of more than US $1.5 billion. JSW Energy will invest funds and LG Energy Solution will supply the tools and technologies required to make batteries for EV.
The JV will be building a 10-gigawatt-hour plant in India, of which JSW Energy is anticipated to use roughly 70% for energy storage and electric vehicles while LG Energy Solution will take the remaining portion.
JSW group is already considering manufacture of electric vehicle. In addition to lowering the cost of its electric vehicles, this JV will provide battery for its its battery energy storage (BESS) business.
Last year JSW Group had established a joint venture with SAIC Motor with 35% ownership in MG Motor India division.
JSW Group since last year(2023) has been exploring entering into the electric vehicle (EV) market through a strategic partnership with South Korea’s LG Energy Solution (LGES). JSW Group was also in talks with global battery manufacturers such as CATL, Panasonic and Toshiba to build a local supply chain, as it intended to to establish an electric vehicle battery factory with a capacity of 20 gigawatt-hours (GWh) by the decade’s end, with an initial phase of 8 GWh.
