South Korea’s LG Energy Solution (LGES) and India’s JSW Energy are in advanced talks to form a joint venture for manufacturing batteries for electric vehicles (EVs) and renewable energy storage. The project is expected to need an investment of over $1.5 billion, according to two sources familiar with the matter.
Both companies have signed an initial agreement for an equal partnership. LGES will provide battery technology and essential equipment, while JSW Energy will fund the project, one source revealed.
The discussions include plans to build a battery plant in India with a total production capacity of 10 gigawatt-hours (GWh). JSW is expected to use about 70% of the output for its EVs and energy storage needs, while LGES will use the remaining portion, said both sources.
An insider mentioned, “LGES wanted a reliable partner in India, and JSW saw this as an opportunity because it is launching its own EV brand, starting with buses and trucks, and later expanding to cars.”
Current Status of the Agreement
The agreement remains non-binding, and both companies aim to finalize discussions in the coming months. The sources, who declined to be named due to the private nature of the talks, noted progress is underway.
In response, LGES stated, “We are actively exploring various business opportunities and monitoring market trends in India. However, no specific plans have been finalized.”
JSW Energy chose not to comment on the matter.
Why This Joint Venture Matters
This partnership offers LGES a strong manufacturing base in India, where it is already the leading battery supplier for local e-scooter makers like Ola Electric and TVS Motor. LGES, which supplies global brands like Tesla, General Motors, and Hyundai, views this venture as a way to diversify its operations and reduce risks in emerging markets like India.
Amid slowing EV demand globally, LGES has already scaled back investments for next year. Expanding into India, where the EV market is still growing, gives LGES a significant foothold in a promising market.
For JSW Energy, led by billionaire chairman Sajjan Jindal, this partnership ensures local battery supplies for its energy storage and EV businesses. It also helps bring down costs for JSW’s EV lineup.
Last year, JSW partnered with China’s SAIC Motor, securing a 35% stake in its India unit, MG Motor, which JSW is now helping expand.
Future Plans
A source revealed that JSW has proposed a 25-year agreement to LGES, but JSW remains open to engaging with other battery manufacturers as well.
Both companies aim to make the plant operational before the end of 2026 and expect to finalize the agreement within three to four months.
If this deal goes through, it would align with Prime Minister Narendra Modi’s government goals, which include promoting local manufacturing of clean energy vehicles through large-scale incentives.
India’s EV Market Landscape
India’s EV market is currently led by Tata Motors and MG Motor in electric cars, while homegrown brands like Ola, TVS, and Bajaj Auto dominate the e-scooter segment.
This partnership will mark a big step toward making affordable, locally manufactured batteries for India’s growing clean energy and EV sectors.
