Taking the next big step as it gears up to enter India’s fiercely competitive automotive market, the JSW Group has signed a Memorandum of Understanding (MoU) with the Odisha government to set up an integrated electric vehicle (EV) and EV battery manufacturing plant in Cuttack and Paradip. The battery plant will have a capacity of up to 50 GWh, and the integrated unit will also include a lithium refinery, copper smelter and other EV component manufacturing units. The MoU signing ceremony was graced by Odisha Chief Minister Naveen Pattanaik, industries minister Pratap Keshari Dev, JSW Group chairman Sajjan Jindal and other senior government officers.
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This announcement follows JSW picking up a 35 per cent stake in MG Motor India, entering into a joint venture (JV) with MG’s parent company Shanghai Automotive Industry Corporation (SAIC Motor), in November 2023. With an investment of Rs 40,000 crore in the state, JSW says its EV manufacturing project is poised to generate over 11,000 jobs in total, along with catalysing the auto component supply chain and services sector and upskilling the local workforce.
JSW entered into a joint venture with MG's parent company SAIC Motor in November 2023.
“We are keenly focused on leveraging the opportunities presented by the new age sectors, aiming to create high-skill job opportunities for the people of Odisha. Through our collaboration with JSW Group, we are setting the stage for a future where innovation drives our industrial growth, ensuring that the youth of Odisha have access to the skills and jobs that will define the next generation of economic development”, said Pattanaik at the MoU signing.
“Our longstanding relationship with Odisha and its people forms the foundation of our new venture. This project is a milestone in our journey, reflecting our commitment to the state's development and prosperity. By integrating our operations within Odisha's vibrant ecosystem, we aim to create a symbiotic relationship that benefits all stakeholders, fostering growth and innovation, and generating numerous high-skilled job opportunities. It's a testament to our belief in Odisha's potential and our dedication to contributing positively to its economic landscape", said Jindal.
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Most of MG's new future products for the Indian market will have an electric powertrain.
The joint venture between JSW and MG is crucial for the latter to continue its India innings, as its long-term plans have been clouded with uncertainty for some time now, owing to the frosty ties between India and China. To put things into perspective, MG Motor has had a single new product launch in India in the last two years, which was the Comet EV, in early 2023.
As part of the JV, JSW will focus on expanding MG’s vehicle portfolio in India (with a focus on launching ‘green’ vehicles), enhancement of local sourcing, improvement of charging infrastructure for electric vehicles (EVs) and expansion of production capacity. In 2023, MG Motor India announced it will hand over a majority stake in the company to Indian suitors. As part of the strategic 5-year ‘MG 3.0’ plan, the carmaker – a wholly-owned subsidiary of China’s SAIC Motor – aims to have an Indian entity as its majority stakeholder.
