India’s Top Conglomerates Invest $1B in Battery R&D to Break China’s Grip on EV Supply Chain

Breaking: Tata and JSW Launch $1 Billion Battery R&D Push to Cut Chinese Dependence

India’s largest conglomerates, Tata Group and JSW Group, are jointly committing nearly $1 billion to establish independent research centers focused on next-generation battery chemistries and advanced electric vehicle (EV) systems. The move comes as both companies seek to reduce their heavy reliance on Chinese suppliers for critical battery components, anticipating tighter export restrictions from Beijing.

“This is a strategic hedge against supply chain vulnerability,” said Dr. Rajan Sharma, a senior energy analyst at the Delhi-based Centre for Policy Alternatives. “India cannot afford to be held hostage by Chinese export controls, especially as its EV market accelerates.”

Background: India’s Battery Import Dependence

India currently imports over 70% of its lithium-ion battery cells from China, according to government data. Tata and JSW, which manufacture everything from steel to cars, have long relied on Chinese suppliers for key components such as cathodes, anodes, and electrolytes.

China has already tightened export rules on graphite, a critical battery material, and has signaled further restrictions on technology transfer. The Indian government has responded with production-linked incentives (PLI) for domestic battery manufacturing, but private investment remains crucial.

Investment Details and R&D Focus

Tata and JSW are funding separate R&D centres, each focusing on different next-generation chemistries. Tata is prioritizing solid-state batteries and sodium-ion technology, while JSW is exploring lithium‑sulfur and advanced lithium‑iron‑phosphate (LFP) variants. Both aim to reduce dependence on cobalt and nickel, materials largely controlled by China.

“We are not just looking at incremental improvements,” said a senior Tata executive, speaking on condition of anonymity. “We want to leapfrog to chemistries that can be manufactured indigenously with Indian raw materials.” JSW declined to comment on specific technologies but confirmed the investment figure.

What This Means for India’s EV Ambitions

The $1 billion outlay signals a paradigm shift. India aims for 30% of new vehicle sales to be electric by 2030, but that target hinges on a secure battery supply chain. “Without domestic R&D, India will remain an assembler of imported batteries,” said Dr. Sharma. “This investment could change that.”

If successful, the two conglomerates could slash their battery costs by up to 40% and create a new export ecosystem for battery materials. However, experts caution that commercial production of next-generation batteries is still three to five years away.

Market and Policy Reactions

Shares of Tata Motors and JSW Steel rose modestly on the news, while analysts upgraded their outlook for India’s EV components sector. The Indian government welcomed the move, with the Ministry of Heavy Industries stating it “aligns with the National Mission on Transformative Mobility and Battery Storage.”

“Private sector leadership is essential to reduce import dependence,” said a ministry spokesperson. “We expect more such announcements in the coming months.”

Outlook and Risks

While the investment is substantial, challenges remain. India lacks domestic reserves of lithium and cobalt, and recycling infrastructure is nascent. Tata and JSW will need to secure raw material partnerships abroad, such as in Australia or South America.

“R&D is the easy part,” said Dr. Sharma. “Scaling up to gigawatt-hour production requires massive capital and time. This is a long-term bet, but a necessary one.”

The next 12 months will be critical as both companies finalize locations for their R&D centres, likely in Bangalore and Mumbai. Industry insiders expect the first prototype cells to be ready by late 2026.

— Reporting by The Next Web News Desk