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LG and JSW Energy looking a potential JV in Li-On battery space

ICICIdirect Research 20 Dec 2024 DISCLAIMER

According to media sources, LG Energy Solution (LGES, a global supplier of EV batteries) is currently under discussion with India's JSW Energy to establish a joint venture focused on manufacturing batteries for electric vehicles and renewable energy storage, requiring an investment of over $1.5 billion (~₹ 12,735 crore).

The two companies have signed an initial agreement for an equal partnership, where LGES will provide the necessary technology and equipment, while JSW will contribute the financial investment.

Plans include setting up a battery manufacturing plant in India with a total capacity of 10 gigawatt hours, with JSW expected to utilize about 70% of this capacity for energy storage and electric vehicles.

This partnership aligns with LGES's strategy to enter the Indian market, where it already supplies batteries to e-scooter manufacturers like Ola Electric and TVS Motor, and supports JSW's ambitions to launch its own line of electric vehicles, starting with buses and trucks.
The agreement remains non-binding, and both companies anticipate finalizing discussions in the coming months

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