L.

G Energy Solutions Korean company with Government of India

South Korea’s largest electric vehicle (EV) battery

manufacturer, LG Energy Solution, (LGES) is talking with Indian
steelmaker JSW Group to establish a joint venture to make battery
cells for locally made EVs and energy storage systems (ESS),
according to local reports.

The two companies were said to have held talks earlier this
month over jointly investing in a plant with initial capacity of 8GWh
of batteries per year, rising to 20GWh by the end of the decade.

Mumbai based JSW is a major Indian industrial conglomerate

which has expanded into new market segments in recent years,
including energy, infrastructure, building materials and real estate.
The company’s billionaire chairman Sajjan Jindal recently announced
his ambition to enter the local EV supply chain.

JSW was understood to have also talked with other battery

manufacturers to support its plans, including China’s Contemporary
Amperex Technology (CATL) and Japan’s Panasonic Holdings.

The JSW/LGES meeting was said to have focused on

establishing JSW’s requirements from a strategic partner although
the two companies have not yet commented directly on their talks.

India overtook Japan last year to become the world’s third

largest vehicle market after China and the US, with 4.8m domestic
sales in 2022. It is also the world’s most populous nation with 1.4bn
inhabitants and has some of the world’s most polluted cities.
EVs still account for a small fraction of total vehicle sales but
the government is now offering incentives to encourage the
adoption of zero emission vehicles. There is also significant growth
potential in the electrification of the country’s two wheeler segment
which is the world’s largest with 16m sales last year.
 LGES is a major battery supplier to Hyundai Motor Group which
is also one of India’s largest vehicle manufacturers based in Chennai.
The company already exports batteries to Indian motorcycle
manufacturers TVS Motor and Ola Electric. It opened an office in
New Delhi earlier this year to strengthen its presence and boost local
growth.

South Korea’s LG Energy Solution Ltd., one of the world’s largest

battery makers, is in talks with Indian steel-to-energy conglomerate
JSW to make electric vehicle batteries in India.

JSW held talks with senior LG Energy executives in Korea earlier

this month, proposing a partnership to jointly manufacture battery
cells for EVs and energy storage systems (ESS), Reuters reported on
Thursday, citing unidentified sources.

The Indian business group wants to set up a factory to produce

20 gigawatt hours (GWh) in battery capacity in phases by the end of
this decade, starting with 8 GWh in the first phase, one of the people
with knowledge of the matter, was quoted as saying.

LG, which supplies battery cells to major global automakers,

including Tesla Inc. and General Motors Co., has asked JSW to share
details of its requirements for EVs and energy storage, sources said.

Both LG Energy and JSW declined to comment on the Reuters

report.
The Indian company, headquartered in Mumbai, is also in talks
with other battery players, including China’s Contemporary Amperex
Technology Co. Ltd. (CATL) and Japan’s Panasonic and Toshiba,
according to the report.

JSW’s talks with potential partners are ongoing and a final

decision hasn’t been made, it said.
 JSW’s billionaire Chairman Sajjan Jindal has expressed his desire
to build a local supply chain covering batteries and electric cars.

ATTRACTIVE MARKET FOR LG ENERGY

With about 4.76 million car sales in the domestic market last
year, India is the world’s third-largest auto market after China and the
US and among the fastest-growing EV markets in Asia.
India is also the world’s most populous country with 1.43 billion
people, surpassing China earlier this year.

With only a handful of companies offering electric cars, India’s

EVs accounted for a mere 1% of its total four-wheeler sales in 2022.

The Indian government is pushing to expand EV adoption by

incentivizing carmakers and subsidizing consumers to raise the share
of EVs to 30% of its total cars by 2030.

India also offers companies billions of dollars in incentives to

locally produce batteries and other EV components.

Tesla is among those carmakers said to be in talks with the

Indian government to build EVs and batteries there.

BATTERIES FOR SCOOTERS

Earlier this year, LG Energy opened an office in India’s capital

New Delhi to enhance its presence in the fast-growing EV and energy
storage businesses.

The Korean company already supplies imported battery cells to

India’s two electric scooter makers – SoftBank-backed Ola Electric
and homegrown rival TVS Motor.
 LG is developing batteries suitable for two-wheeled vehicles
through its startup KooRoo, which offers battery-swapping services.

Korean carmakers are also tapping business opportunities in

India.

Last month, Hyundai Motor Co. signed a deal to take over a GM

car manufacturing plant in Talegaon, Maharashtra.

Hyundai, which already operates a plant in Chennai, dubbed

the Detroit of Asia, with an annual production capacity of 820,000
vehicles, is expected to increase its output capacity to 1 million units
with the acquisition of the GM factory and more investment.