Battery Cells Will Become “New Oil” as Transportation Shifts From Engines to EVs

India’s shift towards electric vehicles could reduce its dependence on imported crude oil, but it may create another challenge if battery cells continue to come mainly from overseas. JSW Group chairman Sajjan Jindal has said that battery cells will become the “new oil” as electric mobility grows.

Battery Cells Will Become “New Oil” as Transportation Shifts From Engines to EVs

Jindal believes India needs to develop its own battery-cell technology to protect its energy security and build a stronger electric vehicle industry.
 

India Needs Its Own Battery Technology

India currently imports a large amount of crude oil for transportation. Electric vehicles can reduce the need for petrol and diesel, but EV batteries depend on cells and raw materials that are still largely sourced from outside India.

According to Jindal, India must produce battery cells locally instead of simply replacing dependence on imported oil with dependence on imported battery technology.

He said JSW is already working on developing its own battery-cell technology. The company expects this work could take around one to two years, depending on the development process.

JSW is also studying different battery chemistries, including lithium-ion and sodium-ion technology.

JSW Initially Importing Battery Cells

JSW Greentech recently launched its Ampstar electric commercial vehicle brand and showcased an electric tractor-trailer and electric bus.

The company plans to assemble battery packs in India at its manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra. However, the battery cells will initially be imported from China.

JSW Initially Importing Battery Cells

JSW will use these cells to make battery packs locally while continuing to work on its own cell technology.

The company wants to maintain control over important parts of its electric vehicles, including the vehicle architecture, software, battery-pack design and vehicle-control unit.
 

China Has A Major EV Battery Lead

China currently has a major advantage in battery-cell technology and manufacturing. Jindal said battery technology is closely protected, making it difficult for Indian companies to simply obtain the complete know-how.

Instead, JSW plans to develop its capabilities through research and development while learning from existing technologies.

The company has also placed a strong focus on R&D. Of its first 100 employees at JSW Greentech, 88 were hired for research and development.
 

Domestic Battery Cells Could Reduce Import Dependence

Local battery-cell production could help India build a larger EV manufacturing ecosystem. It could also reduce dependence on imported battery cells as electric cars, buses and commercial vehicles become more common.

For now, JSW's immediate focus is on local battery-pack assembly. The bigger goal is to develop battery-cell technology in India.

Jindal believes stronger domestic R&D and technology development will be important if India wants to become a leader in electric mobility rather than remain dependent on imported technology.
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