JSW is in preliminary discussions with Korea's LG Energy Solution (LGES) about jointly manufacturing batteries in India, as it moves forward with plans to construct electric vehicles (EVs) locally.

Earlier this month, the steel-to-energy group met with LGES, proposing a collaboration to manufacture battery cells for EVs and energy storage in India. To develop a domestic supply chain for EVs, the company is also in discussion with other battery players such as China's CATL and Japan's Panasonic and Toshiba. It is looking at storage, motors, and battery management.

LGES, which supplies battery cells to major automakers such as Tesla and General Motors, has requested JSW to share information on its EV and energy storage requirements.

As part of its EV strategy, the business plans to build a facility capable of producing 20 gigawatt hours (Gwh) of battery capacity in phases by the end of this decade, beginning with eight Gwh in the first. JSW is also in talks with Chinese automaker Leapmotor to licence technology to build EVs under its own brand in India.

The government is offering incentives for companies who manufacture batteries and other EV components locally, and it is developing a new policy for EVs which would offer lower import taxes in return for investment in local production.