JSW Group, which recently acquired a 35% stake in MG Motor India, has ambitious plans to significantly expand its cell and battery manufacturing capacity. According to a senior company official, the group is aiming to ramp up its proposed facility’s capacity to 50 GWh by 2028. This expansion plan aligns with JSW’s broader strategy to strengthen its position in the rapidly growing electric vehicle and battery energy storage sectors. To advance its battery production goals, JSW is actively engaged in discussions with major battery manufacturers to secure a technology partnership for its cell manufacturing initiatives.
The company has outlined a phased approach for its cell and battery manufacturing expansion. In the first phase, JSW aims to establish a production capacity of 10 GWh by 2026. The second phase will see this capacity grow to 50 GWh, positioning the company as a key player in India’s evolving battery manufacturing landscape. By the third phase, expected to conclude by 2030, JSW plans to venture into lithium refining, targeting a plant with a capacity of 60,000 TPA, as well as setting up a copper smelter plant with a capacity of 1 MTPA.
JSW’s strategic focus extends beyond battery production to include key components of the battery supply chain. The company intends to invest in the upstream value chain of battery cell manufacturing, particularly in areas such as Cathode Active Material (CAM), Anode Active Material (AAM), and separators. These materials are critical for the efficient and cost-effective production of high-performance batteries, and JSW’s investment in this area signals its intent to play a significant role in the broader battery ecosystem.
Earlier this year, in February, JSW Group signed a memorandum of understanding (MoU) with the Odisha government to establish an electric vehicle and battery manufacturing facility in the Cuttack and Paradip regions. The project, with an estimated investment of Rs 40,000 crore, represents a major commitment by JSW to bolster India’s domestic electric vehicle and battery production capabilities. The primary goal of JSW’s battery cell manufacturing efforts is to support its internal needs, particularly for electric vehicles and battery energy storage systems.
The group has established two subsidiaries to drive these initiatives—JSW Green Mobility, which focuses on electric vehicles, and JSW Battery Storage Systems (BSS), which is dedicated to battery storage technologies. India is still in the early stages of developing its domestic lithium-ion battery manufacturing capacity, a critical component for the electric vehicle industry and renewable energy storage. At present, the country relies heavily on imports of lithium-ion batteries from countries such as China, Japan, and South Korea.
However, India’s battery manufacturing capacity is expected to undergo a significant transformation, with projections suggesting it could reach 110 to 1500 GWh by the end of this decade. To accelerate this growth, the Indian government has introduced a production-linked incentive (PLI) scheme, valued at Rs 18,100 crore, aimed at establishing advanced chemistry cell (ACC) manufacturing facilities in the country. The scheme aims to build a battery manufacturing capacity of 50 GWh, which will play a crucial role in supporting the adoption of electric vehicles and strengthening local supply chains.
Battery costs account for approximately 40% of the total cost of an electric vehicle, making it a significant factor in determining the affordability and widespread adoption of EVs in India. The high upfront costs, largely driven by expensive batteries, have been identified as a major obstacle to the mass adoption of electric vehicles in the country. By localizing battery manufacturing, companies like JSW Group aim to reduce these costs, making electric vehicles more accessible to consumers.
JSW Neo Energy, the renewable energy arm of JSW Group, is also actively involved in the government’s PLI scheme for advanced chemistry cells. The company was one of seven bidders for a 10 GWh capacity under the PLI initiative, although the capacity was ultimately awarded to Reliance Industries Ltd. JSW Group is not alone in its pursuit of battery manufacturing dominance. Several other companies, including Ola Electric, Reliance Industries, Amara Raja, Exide Industries, GODI India, and Rajesh Exports, are also in the process of establishing their own giga factories to produce battery cells within India.
These investments are poised to reshape India’s battery production landscape, reducing reliance on imports and fostering a robust domestic battery manufacturing ecosystem. Reliance Industries, for instance, is making significant strides with its own battery Gigafactory, which is slated to begin operations in the latter half of 2025. The facility will have an initial annual capacity of 30 GWh and will start by assembling battery systems and packs, before expanding into cell manufacturing and chemical production.
Amara Raja is also making noteworthy progress in this space. Recently, the company announced a technology partnership with Gotion High-Tech, a leading global battery manufacturer, to license Gotion’s technology for producing cells in both cylindrical and prismatic form factors. This partnership underscores the growing importance of advanced battery technology in India and highlights the country’s potential to become a major player in the global battery manufacturing industry.
As India continues to transition towards electric vehicles and renewable energy, companies like JSW Group are positioning themselves to be at the forefront of this revolution. By investing in battery manufacturing, refining, and component production, JSW is not only addressing its own internal needs but also contributing to the development of a sustainable, self-reliant battery ecosystem that will play a pivotal role in shaping the future of transportation and energy in India.
JSW Group is a leading Indian conglomerate with diverse interests in steel, energy, infrastructure, cement, and paints. Established in 1982, the group is renowned for its innovation-driven approach and commitment to sustainable development. Through its subsidiaries, JSW focuses on creating value across sectors, driving India’s industrial growth while contributing to renewable energy and green mobility solutions.
