BT Explainer: Why JSW Group is putting its plans to make battery cells in India on hold

Steel-to-automobiles conglomerate JSW Group has put its plans to manufacture battery cells in India on hold even as it scouts for a technology partner.

“We are very keen to make cells in India. LFP (lithium-ion phosphate cell) technology currently is not available for us. The hunt is on for a technology tie up. We have not secured a technology tie-up. Hence that project is currently on hold,” Parth Jindal, Director of JSW MG Motor India, told reporters on the sidelines of the launch of the carmaker’s Hector Tomahawk EV and PHEV.

The technology used in making the LFP cell, the most crucial part of an EV, is not available anywhere in the world outside of China, said Jindal, adding that the neighboring country is “guarding it like a weapon” right now.

“LFP cell only comes from China, and they are not giving technology. We are ready to invest and make it in India,” he said.

MUST READ | JSW MG Motor's EV bet? It's Hector Tomahawk EV

India’s lithium-ion cell imports jumped 64% year-on-year to Rs 41,667 crore in FY26, with China accounting for 84% of India’s lithium-ion cell imports, according to the commerce ministry data.

To become self-reliant in battery cells, the government rolled out a Rs 18,100-crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC). While 40 GWh of battery cell capacity was awarded to beneficiaries, cell production has barely started. Only Ola Cell Technologies, a subsidiary of Bhavish Aggarwal-led Ola Electric that won a 20 GWh allocation, has started commercial operations.

Mukesh Ambani-led Reliance Industries Ltd, which bagged 15 GWh of cell capacity, has promised to complete its cell gigafactory by 2026. Anant Ambani, Executive Director of Reliance Industries, had said that access to battery technology is being “weaponized” at the company’s 49th Annual General Meeting.

DON'T MISS | JSW MG Motor launches India’s first mainstream plug-in hybrid Hector Tomahawk PHEV at ₹25.69 lakh

Agratas, the Tata group's battery manufacturing venture, is also going solo in battery cell manufacturing. It is setting up a 20 GWh battery cell manufacturing plant in Gujarat’s Sanand.

Amara Raja Energy & Mobility Ltd, a legacy lead-acid battery maker that lost out on the ACC PLI scheme, is building the technical know-how in-house after its proposed partnership with China’s Gotion hit a wall.

“There is a bit of policy uncertainty. There have been export controls and restrictions on technology access. Our own tech partnership has not gone ahead. It’s become an in-house effort. There have been some stumbling blocks,” Vikramadithya Gourineni, Executive Director, Amara Raja Energy & Mobility, told Business Today earlier this year.

Exide Industries, another lead-acid player, has also flagged delays for its upcoming LFP cell manufacturing plant.