South Korea's LG Energy Solution and India's JSW Energy are reportedly in discussions to form a joint venture for manufacturing batteries for electric vehicles (EVs) and renewable energy storage in India. The potential collaboration, valued at over $1.5 billion, could significantly impact the Indian EV landscape.

According to media sources with knowledge of the ongoing talks, the two companies have signed an initial agreement for an equal partnership. LGES, a leading battery supplier for global automakers like Tesla and General Motors, would contribute the technology and equipment for battery production. JSW, an Indian steel-to-energy conglomerate, would invest the necessary capital.

The proposed venture aims to establish a battery plant in India with a total capacity of 10 gigawatt hours (GWh). JSW is expected to utilize approximately 70% of this capacity for its energy storage and EV needs, with LGES taking the remaining share.

This collaboration presents several potential benefits for both companies. LGES gains a manufacturing presence in India that has a rapidly growing market for EVs. The joint venture would solidify their position as a top battery supplier, already dominating the Indian e-scooter market with clients like Ola Electric and TVS Motor. Additionally, establishing a manufacturing base in India allows LGES to mitigate risks associated with a nascent EV market and adjust to slowing global EV demand.

For JSW, the venture represents an opportunity to secure a local battery supply chain for their energy business and significantly reduce the cost of their upcoming electric vehicles. JSW Chairman Sajjan Jindal has previously expressed ambitions to enter the EV space, and this partnership aligns with those goals. Notably, JSW already has experience collaborating with a foreign automaker, having formed a joint venture with China's SAIC Motor in 2023.

The potential 25-year agreement between LGES and JSW reflects their long-term commitment to the Indian market. Both companies aim to finalize the deal within the next 3-4 months and have their production plant operational by the end of 2026.

This collaboration aligns with the Indian government's push for clean energy and domestic EV manufacturing. Prime Minister Narendra Modi's administration has offered significant incentives to companies investing in local EV production. If successful, the LGES-JSW venture could be a major boost for India's clean energy goals and its burgeoning EV industry.

While both LGES and JSW declined to comment specifically on the ongoing talks, media reported earlier discussions between the two companies in 2023. The finalization of this potential partnership will be closely watched by investors and stakeholders in the Indian and global EV markets.