The group is scouting for a partner, and one possible option could be setting up the plant in a Southeast Asian country. India has comprehensive free trade agreements with several Association of Southeast Asian Nations (Asean) countries, including Thailand, Vietnam, Malaysia, and Indonesia.
The technology for manufacturing the cells is available in countries such as China, South Korea, and Japan. The cell plant will be built in two phases. Said Ranjan Nayak, CEO of JSW Motors Limited: “Our investment in the first phase would be to build a 10 GWh plant with an investment of around $700-750 million. In the second phase, we will add another 20 GWh, which will require an investment of $600 million — taking the total investment to over $1.3 billion.”
Nayak said the company plans to use Li-ion phosphate batteries in its vehicles, which he described as cost-effective and suitable for India’s warm climate. However, the technology is concentrated in China, while countries such as South Korea and Japan are major players in lithium nickel manganese cobalt batteries. The Chinese government, however, has been placing restrictions on technology transfer.
In the interim, JSW will import cells from China but is setting up a plant in India to assemble batteries and manufacture other components, as it plans to deliver its first NEVs by the end of December or the first week of January 2027.
JSW’s plans come at a time when, except for Ola Electric, none of the other companies — including Reliance Industries and ACC Energy Storage — that were eligible for incentives under the production-linked incentive scheme for advanced chemistry battery cells have been able to commercially roll out products.
Tata Group, through its company Agratas, is also setting up an advanced battery cell plant in Sanand, Gujarat, with an investment of ₹13,000 crore and a capacity of 20 GWh in the first phase. It has also tied up with Envision AESC, controlled by Chinese interests, to provide the technology for manufacturing the cells.
Maruti Suzuki India (MSIL) Chairman R C Bhargava has also pointed out that one of the main stumbling blocks for electric vehicles is that no company is manufacturing cells in the country, with the market dominated by Chinese players. He said setting up a plant would require an investment of over ₹20,000 crore, while raw materials are controlled by foreign suppliers. Bhargava added that MSIL will assemble batteries in India but will continue to import cells.
However, China has a huge cell overcapacity and will eventually have to look for export markets. It currently has an installed capacity of 3,000 GWh and is adding between 600 GWh and 800 GWh of capacity every year. Domestic demand in China, meanwhile, is around 1,200 GWh, though that too is growing.
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