China's SAIC Motor will sell a 35% stake in it's MG Motors India unit to JSW Ventures for Rs. 3577 Cr. ($430M USD). Other investors in the deal include IndoEdge India Fund which will acquire 8% of the unit. An additional 8% will go towards an employee ownership plan and dealer trust; ensuring the JV is majority Indian owned.
This announcement follows the February 10th MoU that JSW signed with the Government of Odisha to set up the worlds largest EV battery manufacturing project and integrated EV plant at Cuttack and Paradip.
Here is a breakdown of the deal:
🤝 Ownership: The plant will be a JV with JSW Group and SAIC Motor who formed a joint venture in India two months ago with a focus on green mobility. SAIC is already active in India through its fully owned subsidiary MG Motor India Pvt. Ltd. but has struggled to grow its market share. The partnership will support the growth of MG in India by increasing locally sourced auto parts, expanding production capacity, and developing charging infrastructure.
🏭 Investment: In Cuttack, JSW will set up an integrated manufacturing facility for EVs, both passenger and commercial, and a 50GWh battery plant. JSW claims this will be the worlds largest battery manufacturing facility by capacity. Currently the largest plant is the #Tesla - Panasonic facility in Nevada which has 37GWh of capacity. The integrated facility will be a two-phase project has an allocated outlay of Rs 25,000 Cr, it is expected to create 4,000 jobs.
In Paradip, the group will set up an EV components plant to make powertrains. They also plan to develop a vendor ecosystem in the state to supply sub-components to the EV plant. A lithium refinery, with an annual capacity of 60K tonnes, and a 1M tonne copper smelter will also be part of the Paradip complex. The powertrain and auxiliary manufacturing location will require an outlay of Rs 15,000 Cr, and is expected to create 7,000 jobs.
JSW aims for annual capacity of 100,000 electric trucks and buses and 300,000 electric cars from its new facility. There is no word on expected start of production at either facility.
💵 Incentives: The Odisha government has approved providing 1,100 acres of land to JSW Group in Cuttack at a concessional rate, 220 KV of electricity and 10 cusecs of water from Mahanadi river. The company has also been promised a capital subsidy of 20% of the project cost during a period of five years, said Odisha industries secretary Hemant Sharma.
Takeaways: Across a scale of conservative to accelerated cases, NITI Aayog expects between 106 GWh to 260 GWh of annual demand for batteries in India by 2030. The new Odisha facility would be able to satisfy a huge chunk of that demand. And by creating an integrated facility, the JV will be able to capture more value add.
Source: ET Auto - https://lnkd.in/gCZjjQKi
#EV #batteries #India #energystorage