JSW puts India battery-cell plans on hold as it seeks LFP technology partner
JSW Group has paused its battery-cell manufacturing plans in India while it looks for access to LFP technology, underscoring the auto sector’s reliance on Chinese cell supply. China accounted for 84% of India’s Rs 41,667 crore lithium-ion cell imports in FY26.
What happened
JSW Group has paused India battery-cell manufacturing plans until it secures LFP technology, largely controlled by China. The report highlights India’s
Key facts
- India's lithium-ion cell imports rose 64% year-on-year to Rs 41,667 crore in FY26
- China accounted for 84% of India's lithium-ion cell imports
- Rs 18,100-crore ACC Production Linked Incentive scheme
- 40 GWh battery-cell capacity awarded under the scheme
- Ola Cell Technologies received 20 GWh allocation
- Reliance Industries received 15 GWh allocation
- Agratas is setting up a 20 GWh plant
Why this matters
JSW’s search creates an opening for LFP technology licensing, joint ventures and strategic supply alliances with non-Chinese cell makers seeking a foothold in India.
What to watch
- A disclosed JSW technology partner, licensing agreement, JV structure or revised cell-plant timeline.
- Commissioning dates, yield disclosures and OEM customer wins from Agratas, Reliance, Amara Raja and Exide.
- Changes in India's battery-cell import mix, particularly China's share and imports of LFP cells versus packs.
- New tariffs, quality-control rules, PLI disbursements or localization requirements affecting imported cells and battery packs.
- Long-term cell supply contracts between Indian OEMs and Chinese, Korean or domestic producers.
- Evidence that Indian-made cells reach cost and performance parity with imported LFP cells.
- JSW is likely to prioritize LFP technology licensing, joint-venture discussions or a contract-manufacturing arrangement before recommitting major cell-plant capital.
- Indian EV makers may extend cell supply agreements with Chinese battery producers while diversifying through Korean, Japanese and emerging domestic suppliers.
- Battery companies with active Indian cell programs may seek binding OEM offtake contracts to improve project financing and accelerate commissioning.
- Automakers may favor LFP-based mass-market models and redesign packs around available imported cell formats, slowing supplier localization decisions.
- Policymakers may face pressure to shift from capacity incentives alone toward technology-transfer, equipment, mineral-processing and battery-recycling support.