LG Energy Solution of South Korea is in talks with India's JSW Energy for a joint venture to manufacture the batteries used in electric vehicles and renewable energy storage. The two sources, who are knowledgeable about the matter, revealed that the venture, requiring an investment of more than $1.5 billion, was still in the negotiation phase. The preliminary agreement between the two companies establishes a partnership whereby LGES will provide the technology and equipment for battery production, and JSW Energy will make the financial investment.

The discussions include setting up a plant in India with a total capacity of 10 gigawatt hours of which JSW is likely to use about 70 per cent for energy storage and electric vehicles and LGES will take the remainder, both sources said.

"LGES wanted a partner in India and JSW is interested because it is coming up with its own brand of EVs starting with buses and trucks, and later on cars", said the second person.

The agreement is non-binding and both companies expect to finalise the talks over coming months, said the two sources who have direct knowledge of the discussions but declined to be identified as the talks are still private.

"We are exploring various potential business options and monitoring market situation closely", LGES said in a statement, adding that it does not have any specific plans for India.