The JSW Group is set to invest Rs 40,000 crore (Rs 400 billion) in Odisha to make high-quality and affordable electric vehicle (EV) batteries that are technologically advanced, and this is a niche area that the group is getting into.
JSW is also slated to make electric cars and e-commercial vehicles from this facility that would be priced at par with internal combustion engine (ICE) vehicles so that JSW can have an edge in the cost-competitive Indian EV market.
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| The current EV batteries have limitations in performance and come at a high price. |
As of now, the price difference between ICE vehicles and EVs in the Indian market is substantial and this is coming in the way of a wider EV adoption in the country.
Strategies to boost EV adoption
According to JSW Group chairman Sajjan Jindal, India’s renewable energy needs can be catered to by providing energy storage at an affordable rate to boost EV adoption.
This can be achieved via strategies such as battery technology at a reasonable price, which will make EVs and e-commercial vehicles affordable (similar to ICE cars), as well as by isolating the supply chain from China.
High-end research to make EVs for Indians
JSW will rivet to high-end research so as to manufacture electric vehicles which are “designed by Indians for India” and redefine the way EV adoption is taken up.
“We have to urgently resolve greenhouse emission issues in an affordable manner,” Jindal clarified.
He added that the country needs to reduce the burgeoning crude oil import bill, which is around $100 billion. And, this can be achieved with a rapid pace of economic growth.
Jindal, who wanted to create a Tesla-like company in India, said, “What Tesla is today is only because of California (which has seen the highest EV adoption in the US). If Tesla is the world’s most-valued company, then it’s because of government support.”
He added, “When India becomes a $10-trillion economy, then some states will be worth a trillion dollars also. And, Odisha must lead the way as it has all the ingredients to do so.”
JSW total investment in EVs
JSW has pumped in a whopping Rs 35,000 crore and another Rs 1,25,000 crore is awaiting investment.
This is apart from the Rs 40,000-crore set aside for the EV project, which is expected to be executed in a time-bound manner.
Win-win for people, companies
According to him, Odisha can become the first state in India where ICE engines used for transportation and mining can be eliminated completely.
This can be a win-win for both local entrepreneurs and people, as it will also help in pollution control and lead to clean air.
India vs China in EVs
Comparing India with China, he said China has sold 10 million EVs while India's figure is an abysmal 0.1 million.
China has set up a 2,000 GW capacity battery plant but in the case of India, it is not even 1 GW.
Jindal acquired 35% MG Motor stake
The Sajjan Jindal-promoted group has also signed an agreement with China’s SAIC Motor to acquire a 35 per cent stake in Indian subsidiary MG Motor India. They will jointly run automobile operations in the country.
E-Vroooom’s views
So, with JSW Group investing Rs 40,000 crore in Odisha to make cheap and high-quality electric vehicle batteries, it would indeed be a niche and highly-lucrative strategy in EVs if the company does not falter with the battery quality and is also able to keep the prices in check for the medium-to-long term.
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