Sajjan Jindal led JSW Group has firmed up plans to invest USD 40,000 crore in Odisha to set up electric vehicle and battery manufacturing facilities Chairman Sajjan Jindal told ET.
The investments, to be made in phases, will be utilised to set up manufacturing facilities with annual production capacity for 100,000 commercial vehicles, 300,000 electric cars and 50 GwH batteries for both mobility and energy storage systems. This would take the Group’s total proposed investment in the state to USD 200,000 crore across automobile, mining, steel, power and cement industries.
Following all clearances, construction will begin by end of this year and integrated facility could be commissioned in 2-3 years (in approx FY27), sources in the know informed.
Jindal said at this “crucial juncture where we have to resolve the issues around green house emissions in a quick time frame and in an affordable manner” and “reduce huge import bill of crude oil which stands currently at around $100 billion”, three quick strategy need to be put in place to achieve these objectives. ”(Manufacture) Batteries with right technology and at an affordable price, electric cars and commercial vehicles at the same price as combustion engine and (lastly) de-couple the supply chain from China”, Jindal said.
In addition to the manufacturing units for vehicles and batteries, JSW Group will set up factories to locally manufacture auto components including electric powertrains through strategic suppliers & vendors, a copper smelter (with caps city of 1-mtpa), lithium smelter (60,000 tpa), and a state-of-the-art R&D centre. The total investment of USD 40,000 crore is expected to generate employment opportunities for 11,000 people.
“One quick statistics explain the importance of this particular project – China has sold 10 million EVs and we have sold hardly 0.1 million. China has set up 2000 GW battery plant and till now we have not set up a 1 GW plant. So much to catch up…so much to do”, Jindal said, adding the Group will focus on high-end research with an objective to produce vehicles “designed by and for Indians.”
JSW Group will set-up an electric vehicle and electric vehicle battery manufacturing project at Naraj, Cuttack. The advanced technology-based battery manufacturing plant, with capacity of 50 GWH, will be the world’s largest single location project in the sector. The company will set up the manufacturing facility for electric vehicles and components in the same integrated complex.
The investment required for rolling out electric vehicles and batteries will be made in two phases. In the first phase, JSW is planning to invest USD 25,000 crore in the state, generating employment for more than 4,000 people. In the second phase, the Group will invest the remaining USD 15,000 crore to develop a manufacturing complex for electric vehicle components including copper and lithium smelters.
Jindal informed, “We aim to revolutionize the automotive industry by producing high-quality batteries and electric vehicles which are not only affordable but also technologically advanced . We seek to redefine the way people commute and power their lives by enhancing EV penetration.”
Separately, JSW Group has inked an agreement with China’s SAIC Motor to acquire 35% stake in Indian subsidiary MG Motor India for an undisclosed amount to jointly run automobile operations in the country. As per the agreement reached between the two companies earlier this fiscal, the Chinese auto major will continue supporting the joint venture with advanced technology and products to deliver mobility solutions to the Indian consumer.
Jindal said, Odisha can be the first state in the country where combustion engines used in transportation and mining sectors can be eliminated completely. “Our footprint in the state extends across various sectors including mining, steel, power, cement etc, So far we have invested around USD 35,000 crore and another USD 1,25,000 crore is in pipeline, apart from USD 40,000 cr in this particular project”, he said.
