LGES could build EV batteries with JSW in India
The South Korean battery cell manufacturer LG Energy Solution is looking for partners for a battery cell factory in India. According to news agency Reuters, LGES is negotiating with the Indian steel company JSW, planning to build a battery cell factory with an initial annual capacity of 8 GWh. Capacity will be expanded to 20 GWh in further phases.
Both companies declined to comment on possible talks when approached by Reuters. According to the news agency, who spoke with people close to the matter, JSW is also negotiating with CATL, Panasonic, Toshiba and other companies to set up a local supply chain for electric vehicles in India.
JSW is apparently reviving its plans to produce electric cars. After JSW scrapped the latter in 2019, it could thus now make a U-turn is now on the cards, Reuters reports.
The company initially considered buying a stake in the Chinese manufacturer MG Motor to kick off EV production. However, talks with MG Motor have been put on hold and JSW is now negotiating with Chinese carmaker Leapamotor about licensing technology to build electric cars in India under its own brand.
India is becoming an increasingly interesting market for electric mobility. The government is pushing EV sales through subsidy programmes such as FAME II, extended until 31 May 2024. Though the scheme targets mainly two- and three-wheeled electric vehicles. Moreover, India’s cabinet approved an incentive scheme of about 260 billion rupees ($3.5Bn) over five years in 2021 to boost the production of battery-electric and fuel-cell vehicles and to promote the manufacture of drones.
Tesla is allegedly also looking to set up a factory there. According to local media, talks about “Giga India” between Tesla and the government resumed in July. The carmaker is apparently also looking to get India to lower import taxes for EVs.
BYD was not allowed to set up shop in the country. The manufacturer wanted to invest around one billion dollars in a new production facility for electric cars and batteries in India, which it wanted to run with its Indian partner Megha Engineering and Infrastructure (MEIL). However, the government there rejected the partners’ application.
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