Battery manufacturers, LG Energy Solution (LGES) and Panasonic Energy, are expediting plans to establish manufacturing facilities in India.
LGES Eyes Three States for EV Battery Manufacturing
LG Energy Solution, a key supplier of EV batteries to Tesla, General Motors, Hyundai, Ola Electric, and TVS Motor, has shortlisted three states – Tamil Nadu, Telangana, and Andhra Pradesh for its manufacturing facility.
As part of its evaluation process, LGES plans to conduct a site visit to a 100-acre plot in Manallur near Chennai, Tamil Nadu, following the Pongal festival.
“They aim to start small and gradually scale up. Tamil Nadu’s strong auto ecosystem could give it an edge,” informed an industry source familiar with the developments.
LGES clarified in a statement that while there are no specific plans for India at present, the company is “exploring various potential business options and closely monitoring the market”.
Panasonic Energy Considers Four States for Entry
Panasonic Energy, one of Tesla’s largest battery suppliers, is also evaluating sites in four states – Telangana, Tamil Nadu, Maharashtra, and Karnataka. Sources indicated that the Japanese company intends to accelerate its plans after prolonged deliberation.
“Japanese companies traditionally take time to assess every metric before committing, but Panasonic is now keen to expedite its entry. While LGES might set up its facility first, Panasonic is expected to follow suit soon,” informed a source privy to the matter.
Partnerships and Investment Plans in the Pipeline
In late 2024, LGES reportedly entered discussions with JSW Energy to form a joint venture for manufacturing EV and renewable energy storage batteries in India.
The collaboration could involve a $1.5 billion investment to establish a ten-gigawatt-hour facility. JSW will utilize 70% of the capacity for energy storage and EVs, while LGES will use the remainder.
Panasonic Energy has been working under India’s Advanced Chemistry Cell (ACC) battery storage scheme.
In April 2023, it announced a partnership with Indian Oil Corporation Limited (IOCL). The partnership aims to explore a joint venture for manufacturing cylindrical lithium-ion batteries.
The initiative, according to Panasonic, targets India’s growing demand for batteries for two- and three-wheel vehicles as well as energy storage systems.
India’s EV Ecosystem Set for a Major Boost
Senior auto analyst Ashwin Amberkar highlighted the transformative impact of these developments on India’s electric vehicle (EV) landscape.
Amberkar commented, “India’s EV adoption relies on affordable, high-performance batteries, and domestic manufacturing is key to building a strong ecosystem. The entry of LGES and Panasonic will strengthen the supply chain, enable technology transfer, and encourage collaborations with local automakers. This move will boost EV affordability, innovation, and position India as a key player in the global EV market”.
Panasonic’s diversification away from China is also expected to align with Tesla’s strategy to mitigate geopolitical risks and reduce costs. Tesla has recently renewed its push to establish a manufacturing and export base in India.
Driving the Clean Energy Transition
These advancements underscore India’s growing importance as a global hub for EV manufacturing and energy storage solutions.
Economictimes.indiatimes.com reported that companies like LGES and Panasonic are expected to support the nation’s clean energy transition. They will also foster innovation and strengthen its position in the global market.
