Tata and JSW to Spend $1bn on Indian Battery Independence
May 7, 2026 – 10:26 am
India’s two largest steel conglomerates, Tata Group and JSW Group, are investing close to $1 billion in separate R&D centers focused on next-generation battery technologies and advanced electric vehicle (EV) systems. This significant move is driven by the need to reduce reliance on Chinese suppliers who currently dominate India’s EV industry.
Background
India’s EV sector heavily relies on Chinese cells, materials, and equipment. China’s tightening of export controls on critical components like graphite, lithium-processing machinery, and battery-making equipment has exposed these conglomerates to potential supply disruptions.
Individual Investments
Tata Group:
- Tata’s R&D effort is part of Agratas, their battery arm, which is constructing a 20 GWh gigafactory in Sanand, Gujarat.
- The new investment will focus on upstream areas: battery chemistry, cell design, and process knowledge.
- They have previously partnered with Tata Technologies to develop battery solutions for mobility and renewable energy storage, with the new funding extending this work into materials and proprietary cell formats.
JSW Group:
- JSW Motors, the conglomerate’s vehicle subsidiary, launched JNEXT (JSW NextGen Technology Center) in Pune in February through a partnership with Tata Elxsi.
- While specific figures are not confirmed publicly, Bloomberg sources indicate the combined investment is "nearly $1 billion," spread across multi-year R&D programs rather than factory expansion.
Catalyst: Chinese Policy Changes
The recent tightening of export controls by China prompted executives from Reliance Industries to secure equipment for a planned battery plant in Wuxi, only to face delays and rerouting of hundreds of shipments to India. Tata Motors has also had to rely more on Chinese suppliers, launching the Curvv.ev with cells from Octillion Power Systems and partnering with Envision AESC for higher-density packs.
Conclusion
Building domestic chemistry programs is seen as a medium-term solution to hedge against further disruptions in the supply chain.