Indian conglomerate JSW Group has put its ambitious plans to establish battery cell manufacturing in India on hold. The primary reason cited by Parth Jindal, Director of JSW MG Motor India, is the inability to secure the necessary Lithium-ion Phosphate (LFP) cell technology, which he states is not available outside of China and is being "guarded like a weapon."
The decision comes amidst India's growing reliance on imported lithium-ion cells. According to commerce ministry data, India's imports surged by 64% year-on-year to Rs 41,667 crore in FY26, with China accounting for a dominant 84% of these imports. This dependency underscores the strategic importance of domestic battery production for India's burgeoning electric vehicle (EV) sector.
India's Push for Self-Reliance in Battery Production
To foster self-reliance, the Indian government launched an Rs 18,100-crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC). While 40 GWh of battery cell capacity was allocated to various beneficiaries, actual production has been slow to commence. Currently, only Ola Cell Technologies, a subsidiary of Ola Electric, which secured a 20 GWh allocation, has initiated commercial operations.
Other major players also face challenges. Mukesh Ambani-led Reliance Industries Ltd, awarded 15 GWh capacity, aims to complete its cell gigafactory by 2026. Anant Ambani, Executive Director of Reliance Industries, has also previously highlighted how access to critical battery technology is being "weaponized" globally.
Other Players Navigating Technology Hurdles
- Tata Group's Agratas: The Tata group's battery manufacturing venture is proceeding with an in-house approach, setting up a 20 GWh plant in Gujarat's Sanand.
- Amara Raja Energy & Mobility: Despite missing out on the ACC PLI scheme, Amara Raja is developing technical know-how internally after a proposed partnership with China's Gotion encountered difficulties. Vikramadithya Gourineni, Executive Director, cited "policy uncertainty" and "export controls" as stumbling blocks.
- Exide Industries: Another significant player in the lead-acid battery market, Exide Industries, has also reported delays in its planned LFP cell manufacturing facility.
The JSW Group's pause highlights a critical bottleneck in India's aspirations to localize EV battery production, emphasizing the urgent need for strategic partnerships or indigenous development of advanced battery cell technologies to reduce reliance on foreign, particularly Chinese, sources.