JSW Group has put its proposed battery cell manufacturing project in Odisha on hold after failing to secure a technology partner for lithium iron phosphate (LFP) cell production. Parth Jindal, Director of JSW MG Motor India, confirmed the development on August 26, 2026, saying the group remains interested in manufacturing battery cells in India but has not yet secured the required technology tie-up.
The development affects the battery manufacturing component of JSW's wider Odisha investment plans. The group had signed a ₹40,000 crore memorandum of understanding with the Odisha government in 2024 covering an integrated electric vehicle and battery manufacturing complex. The original project framework included a proposed 50 GWh battery facility at Naraj in Cuttack, along with EV and component manufacturing and other industrial investments.
More recent company plans have referred to a 30 GWh battery cell manufacturing project, with an initial 10 GWh phase and planned investment of more than $1.3 billion. Business Standard reported that this specific cell project has now been placed on hold because JSW has not secured LFP technology. The different capacity figures reflect the broader Odisha investment proposal and the subsequently described battery cell manufacturing plan.
The central issue is technology access rather than battery pack assembly. JSW has already commissioned cell-to-pack facilities for its battery storage business through JSW Energy and for JSW MG Motor India. These facilities can assemble imported cells into battery packs, but they do not provide the underlying cell manufacturing capability that JSW was seeking to establish in India.
LFP is particularly important to JSW's strategy because the chemistry is widely used in electric vehicles and stationary energy storage. Compared with nickel-manganese-cobalt batteries, LFP avoids nickel and cobalt and is generally associated with lower cost and strong thermal stability and cycle-life characteristics. The technology is therefore relevant to both mass-market electric mobility and large-scale energy storage applications.
JSW's difficulty is linked to the concentration of LFP manufacturing know-how. Jindal said the group is continuing its search for a technology partner, while reporting has highlighted restrictions on technology transfers from China, where much of the relevant LFP manufacturing ecosystem is concentrated. JSW had previously explored potential partnerships with overseas battery technology companies as it developed its cell manufacturing plans.
The company's earlier Odisha feasibility documentation also identified technology licensing as a critical requirement. The document said JSW had been discussing LFP technology licensing with foreign companies and was considering a joint-venture route because technology owners were concerned about intellectual property protection. It also proposed establishing an R&D facility to develop LFP cell capabilities locally over time.
The pause comes as JSW Energy continues to build its wider energy-storage business. Its FY2025-26 annual report states that the company had operationalized a 5 GWh battery container assembly plant in Pune and had 29.6 GWh of locked-in energy storage capacity as of March 31, 2026. JSW Energy is targeting 40 GWh of energy storage capacity by 2030 through a combination of battery and pumped-hydro storage.
The distinction between cell manufacturing and pack assembly is significant for India's battery localization efforts. Local pack production can support EV and storage deployment while cells are imported, but domestic cell production requires access to manufacturing processes, equipment, materials and intellectual property. JSW's decision therefore leaves its downstream battery operations progressing while its upstream cell manufacturing ambitions remain dependent on securing the necessary LFP technology.
For the Odisha project, the company has described the battery cell portion as being on hold rather than cancelled. The next major step is securing a technology partner capable of providing the LFP manufacturing know-how needed to move the cell facility forward.