JSW Group pauses ₹40,000-crore Odisha battery project

JSW Group has paused its planned ₹40,000-crore battery manufacturing project in Odisha due to difficulties in securing lithium iron phosphate (LFP) cell manufacturing technology. The proposed 50 GWh facility at Naraj, Cuttack, was part of an agreement with the Odisha government announced in February 2024.

Parth Jindal, Director of JSW MG Motor India, stated that while the group remains committed to domestic cell manufacturing, viable LFP technology is currently concentrated in China and is being closely protected by Chinese companies. Consequently, JSW has decided to hold the project until a suitable technology partner is found.

Despite the pause on cell manufacturing, JSW has proceeded with battery-pack assembly. JSW Energy has commissioned a cell-to-pack line for grid-scale storage, and a separate unit has been established for JSW MG Motor India. This delay highlights a broader structural challenge for India’s electric vehicle sector, where domestic cell manufacturing capacity remains low compared to the rising demand and heavy reliance on Chinese imports.