In order to make its new energy vehicles more competitive, JSW Group will be ready with its localised lithium-ion cells from its Orissa factory within 18-24 months.
The Group is currently in talks with multiple potential partners and the cement to steel major is keen only on a technology tie-up and not an equity partnership.
Parth Jindal, Member of Steering Committee of JSW MG Motor India JV, told reporters that to make the new energy vehicles more accessible it is critical for the JV company to localise the cells.
“The investment in Odisha will be made by JSW Group on a standalone basis and the money will go into battery manufacturing, cell to pack manufacturing. The products from the investment in Orissa will first be for this JV. With this, we intend to bring down the cost of the product and localise it in India, so that we can bring in new energy vehicles at the right price point, if not lower but at least at the same price as ICE (internal combustion engine vehicles,” said Parth.
Sajjan Jindal, Chairman of JSW Group said, “Whatever is required to be successful, it will be done – cell manufacturing, the lithium refining, cathode manufacturing, in order become competitive and make new energy vehicle at the same parity as the petrol vehicles. These are the initiatives, that JSW Group will undertake to make it a successful venture.”
He further added that mining is part of JSW Group’s activity and lithium is a very important mineral for manufacturing electric batteries –adding that they would certainly, participate if the government opens up auctioning of these mines.
The Group has already applied for the Production Linked Incentive Scheme for cells with the Government of India for a 5-10 GwH capacity.
JSW Group on its own has already announced an investment of Rs 40,000 crore in the state of Orissa to set up an overall electric vehicle ecosystem.
While the commitment from JSW MG Motor India joint venture is Rs 5000 crore in the first phase, given the ambitious target set by the JV company of 1 million vehicles by 2030, the alliance partners will definitely look beyond Halol, Gujarat, for additional capacity.
Apart from the supply of cells, battery pack – the joint venture company is banking on a strong vertical integration with the JSW Group to bring down the cost by sprucing up sourcing of automotive steel from the Group’s steel arm.
The Mumbai conglomerate also shared that its energy company JSW Energy will work with startups in building the nationwide infrastructure.