Tata, JSW to spend $1bn on EV, battery R&D

Big Indian groups sharpen focus on EV know-how

Two of India’s largest conglomerates, Tata Group and JSW Group, are looking to spend nearly US$1,000 million to build domestic capabilities in electric-vehicle (EV) and battery technologies, according to people familiar with the matter cited in a Bloomberg report. The plans reflect a growing urgency among large Indian companies to reduce dependence on Chinese technology in critical parts of the EV supply chain. The push comes as batteries remain the most expensive and technically complex component in an EV, making in-house expertise and intellectual property a strategic priority. While the investments are being made independently, both groups are setting up research and development (R&D) centers with a clear India-first localisation goal. The people cited asked not to be identified because the details are private.

What the reported investment plans cover

The Bloomberg report describes two separate R&D programmes. Tata Group, through its battery arm Agratas Ltd., is building a new R&D facility in Bengaluru to work on next-generation battery chemistries. JSW Group, through JSW Motors Ltd., is planning an EV research hub in Maharashtra focused on vehicle localisation, software, and connected-vehicle capabilities. Put together, the spend is described as nearly US$1,000 million, with Tata’s facility budgeted at more than US$100 million and JSW Motors planning at least US$100 million over five to six years. The emphasis across both plans is on building in-house capability and reducing reliance on imported technologies.

Why batteries sit at the centre of the strategy

Batteries are described in the report as the priciest and most technically demanding part of an electric vehicle. That makes battery chemistry, cell design, and manufacturing readiness central to any EV company’s competitiveness. For India, building domestic capability is also linked to supply-chain resilience and the ability to scale EV adoption without depending heavily on imported components. The investments signal a more deliberate push by Indian companies to develop local capability and build intellectual property, rather than only assembling vehicles with external technology.

Tata’s Agratas: US$100 million-plus R&D centre in Bengaluru

Tata’s battery unit, Agratas Ltd., is spending more than US$100 million on a new R&D facility in Bengaluru, according to people familiar with the matter cited by Bloomberg. The facility is focused on developing lithium iron phosphate (LFP) and lithium manganese iron phosphate technologies. The stated purpose is to create products that Tata currently depends on from China, and to build intellectual property that could support eventual domestic manufacturing.

LFP cells are also increasingly in demand for their use in battery energy storage systems, a point highlighted in the report. The Bengaluru centre is designed to help Tata develop and eventually manufacture these cells in India, according to the same people. Agratas already has access to nickel manganese cobalt (NMC) battery technology sourced from South Korea, providing it with a broader technology base as it expands R&D into LFP-related chemistries.

Agratas statement: Bengaluru and Oxford labs

Agratas, in an emailed statement cited in the report, said its global R&D programme is progressing well and is supported by two state-of-the-art labs in Bengaluru and Oxford. The company added that it is utilising advanced equipment and a specialised workforce to drive its next generation of battery innovation. The statement provides a window into Agratas’ broader R&D footprint beyond the newly reported facility, indicating that capability-building is being approached through multiple sites.

JSW Motors: Maharashtra research hub over 5 to 6 years

JSW Motors Ltd., the passenger-vehicle arm of Sajjan Jindal-led JSW Group, is pursuing a parallel track. The company plans to invest at least US$100 million over the next five to six years in a research hub in Maharashtra, its Chief Executive Officer Ranjan Nayak said in response to a query from Bloomberg News. The centre’s scope includes localisation of vehicles developed with global partners, building proprietary software capabilities, and advancing work on connected vehicles.

Nayak said the goal is to adapt global automotive technology to Indian conditions, including road environments and price points. JSW also aims to deliver products that meet global quality benchmarks while operating at Indian cost structures, according to the report.

China-linked dependence and tightening tech controls

The investments come at a time when China is increasingly tightening controls on advanced technology transfers, particularly in batteries and EV systems, the report noted. Against that backdrop, the Tata and JSW moves reflect a broader trend among Indian manufacturers: building domestic capabilities not only in hardware such as battery chemistry and EV components, but also in software and connected-vehicle systems.

This focus on localisation is framed as a long-term self-reliance effort in critical mobility technologies, especially where current supply chains depend on Chinese technology or inputs.

Wider Tata battery plans: gigafactory timeline and scale

Separately, Reuters reported that Tata Group has announced an initial investment of US$1,500 million to establish a battery gigafactory in India that will supply Tata Motors. The facility, operated by Agratas, is expected to begin producing lithium-ion cells in 2026, according to Reuters. Tata Motors group CFO P.B. Balaji told Reuters that the gigafactory investment would allow the group to further integrate its supply chain.

Reuters also reported that production at the Gujarat-based gigafactory is expected to reach peak capacity by 2028. The emphasis on domestic cell production complements the R&D push, as chemistry development and process know-how are often key inputs into scalable manufacturing.

Funding and incentives supporting Tata Motors’ EV push

Reuters also reported that Tata Motors has received US$1,000 million in funding from US-based private equity firm TPG. In addition, Tata Motors is a beneficiary of India’s incentive programme for EVs, under which it hopes to get about US$150 million over the next four years, Balaji told Reuters. The first tranche of US$17 million has come in, according to the same report. These figures underscore how capital and policy support are part of the broader EV ecosystem build-out alongside R&D and manufacturing plans.

Key figures at a glance

Market impact and why this matters for investors

The combined R&D spend of nearly US$1,000 million, as reported by Bloomberg, highlights a shift from dependence on imported technology toward in-house capability, especially in battery chemistries such as LFP. For Tata, the Bengaluru R&D centre is positioned to support long-term plans to develop and manufacture battery cells domestically in areas where the company currently depends on Chinese technology. For JSW Motors, the Maharashtra hub is aimed at localisation and software capability building, areas that can influence cost, reliability, and product adaptation for Indian driving conditions.

Separately, the Reuters-reported US$1,500 million gigafactory plan, the 2026 production start expectation, and the 2028 peak-capacity expectation provide a timeline that investors and suppliers can track. The US$1,000 million TPG funding and the expected US$150 million incentive inflows over four years indicate significant financial backing for Tata Motors’ EV strategy, while the reported R&D and manufacturing investments underline how the competitive moat in EVs is increasingly built on cells, software, and localisation.

Conclusion

Tata Group and JSW Group’s reported plans to invest nearly US$1,000 million in EV and battery R&D hubs underline a clear industry priority: build domestic capability and reduce reliance on Chinese technology in batteries and EV systems. Tata’s Agratas is focusing on LFP and related chemistries in Bengaluru, while JSW Motors is building a Maharashtra centre oriented toward localisation, proprietary software, and connected vehicles. Separately, Tata’s US$1,500 million gigafactory plan, with cell production expected to begin in 2026 and peak capacity expected by 2028, sets a manufacturing roadmap that will be closely watched alongside these R&D programmes.