JSW Plans $5-Billion EV Enterprise In Odisha After MG Motor Deal
JSW’s EV plan for Odisha includes an integrated EV manufacturing and battery plant in Cuttack and a lithium-ion refinery and copper smelter in Paradip.
JSW Group has signed an agreement with the Government of Odisha to set up an integrated EV and EV battery manufacturing project at Cuttack and Paradip, in what can be seen as the next step in its electric mobility drive.
The project, with an investment of Rs 40,000 crore, will help create more than 11,000 jobs, spur employment in ancillary and support services, and catalyse development of micro, small and medium enterprises in Odisha, according to a press statement on Saturday. That can open up a new auto component supply chain and services sector in the state.
This new partnership between JSW Group and Odisha builds on the existing relations that they have, Chairman Sajjan Jindal said in the statement.
“By integrating our operations within Odisha’s ecosystem, we aim to create a symbiotic relationship that benefits all stakeholders,” Jindal said. “It is a testament to our belief in Odisha’s potential (as an investment destination) and our dedication to contribute positively to its economic landscape.”
The Odisha EV plan comes more than two months after JSW Group and China's SAIC Motor Co. Ltd. formed a joint venture in India, with a focus on green mobility and to develop the EV ecosystem in the world’s third largest auto market.
JSW has a 35% stake in the new Indian joint venture.
SAIC already has a presence in India through its fully owned unit MG Motor India Pvt. Ltd. but has struggled to grow its presence in the country after Chinese investments faced increased scrutiny from New Delhi. The new joint venture with JSW will also support growth of MG Motor in India by increasing locally sourced auto parts, expanding the production capacity and growing its charging infrastructure.
And that’s where the Odisha project fits in.
Project Details
At Naraj in Cuttack, JSW Group will set up an integrated manufacturing facility for electric vehicles—passenger and commercial—as well as components that go into them. A 50 gigawatt-hour battery plant—for mobility and storage solutions—will also be set up, in what JSW Group claimed would be the world’s largest single location project for the sector.
The two-phase project has an outlay of Rs 25,000 crore with a potential to create 4,000 jobs.
In Jagadishpur district in Paradip, JSW Group will set up an EV components plant to make powertrains in-house. A vendor ecosystem will be developed in the state to feed in other components to the EV plant. A lithium-ion refinery, with an annual capacity of 60,000 tonnes, and a one-million-tonne copper smelter will also come up in the Paradip complex.
The third phase has an outlay of Rs 15,000 crore with a potential to create 7,000 jobs.
In all, JSW Group wants to manufacture annually 100,000 electric trucks and buses and 300,000 electric cars from its Odisha facility. A new R&D facility is also planned at the complex.
“We are keenly focused on leveraging the opportunities presented by the new-age sectors, aiming to create high skilled jobs for people of Odisha,” Naveen Patnaik, chief minister of Odisha, said in the statement.
“Through our collaboration with JSW Group, we are setting the stage for a future where innovation drives industrial growth, ensuring that the youth of Odisha have access to the skills and jobs that will define the next generation of economic development.”
