JSW Group in talks with China's Zhejiang Geely to manufacture electric vehicles

Moneycontrol News

JSW Group is in talks with Chinese company Zhejiang Geely for a partnership to manufacture electric vehicles, financial daily Mint reported on Tuesday.

According to the terms of the proposal, the partnership will be an equal joint venture, where both companies will hold an equal stake, three people privy to the development were quoted as saying.

With a planned investment of around USD 1 billion, the partnership will consider manufacturing high-end electric vehicles and batteries for such vehicles, and setting up the necessary charging infrastructure.

The Sajjan Jindal-owned JSW Group had announced last month that it would invest up to Rs 4,000 crore to manufacture electric vehicles and that it was in talks with several technology providers for the same.

Emails sent to JSW Group and Zhejiang Geely by Mint reportedly went unanswered.

Zhejiang Geely Holding Group owns Geely Automobile Holdings, Volvo Car Group and the London Taxi company.

“They (JSW) have been talking to Geely for some time,” said one of the three people mentioned above. “The plan involves premium EVs and also tapping the Geely ecosystem for battery packs and end-to-end solutions such as charging infrastructure,” a second person said.

JSW Group’s decision to venture into the manufacture of electric vehicles comes at a time when the government has laid out an ambitious plan of a mass-scale shift to electric vehicles by 2030.

One of the sources said that the group had been looking to venture into the automobile sector for quite some time, given its prominent presence in both the steel and energy sectors.

“While it was a logical extension, JSW wasn’t keen on partnering with a traditional auto company. After the announcement of the electric mobility mission, it knew EVs would the next big thing,” the source said.

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