{"id":"f-445134d771-c749f22e-6a53-5ab0-9655-b12322236af8","title":"Reliance Puts Battery Cell Manufacturing on Hold After China Tech Talks Collapse","description":"Reliance Industries Ltd. has halted its plans to manufacture lithium-ion battery cells in India due to the inability to obtain necessary Chinese technology, highlighting challenges in India's clean-energy initiatives.","timestamp":1768206688,"category":"business","headline":"Reliance Puts Battery Cell Manufacturing on Hold After China Tech Talks Collapse","modifiedHeadline":"Reliance Halts Battery Cell Plan After Deal Fails","subCategories":["scid_35b4c0c1"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"110","fcSummary":"Reliance Industries has paused its lithium-ion battery cell manufacturing plans in India after failing to secure Chinese technology due to export curbs. This setback highlights challenges in building an independent clean-energy supply chain despite government incentives and ambitious goals.","summary":"Reliance's battery cell manufacturing plans stall in India after China tech talks collapse, posing a setback to clean energy goals.","ctaUrl":"https://trends.glance.com/newz/news/IN/en/timesnow/f-445134d771-c749f22e-6a53-5ab0-9655-b12322236af8","sourceUrl":"https://www.timesnownews.com/business-economy/companies/reliance-puts-battery-cell-manufacturing-on-hold-after-china-tech-talks-collapse-article-153433388","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/M7o-aU0M_fK0.webp","content":"

Reliance Industries Ltd. has paused its plans to manufacture lithium-ion battery cells in India after failing to secure critical Chinese technology, underscoring

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the deep challenges facing India’s push to build an independent clean-energy supply chain. The Mukesh Ambani-led conglomerate had aimed to begin battery cell manufacturing this year but ran into roadblocks after discussions with Xiamen Hithium Energy Storage Technology Co., a Chinese lithium iron phosphate (LFP) battery supplier, failed to materialise, according to people familiar with the matter. The talks stalled after the Chinese firm withdrew from the proposed partnership amid Beijing’s tightening curbs on overseas technology transfers in strategically sensitive sectors. As a result, Reliance has shifted its near-term focus to assembling battery energy storage systems (BESS)—containerised storage units primarily for its renewable power projects. China Curbs Complicate India’s Clean-Energy Push China has stepped up scrutiny of clean-energy technology exports as it seeks to protect its dominance in batteries and other strategic sectors. This has complicated localisation efforts by Indian companies attempting to scale domestic manufacturing. Reliance’s experience highlights a broader issue: even India’s most powerful conglomerates are struggling to make meaningful progress on clean-energy ambitions without access to proven Chinese battery technology. This comes despite New Delhi’s push to cut import dependence and meet its net-zero emissions target by 2070. A Reliance spokesperson said there was no change in the company’s broader plans. “BESS manufacturing, battery pack manufacturing and cell manufacturing have always been part of our energy storage plans and we are progressing well in their execution,” the spokesperson said in an emailed response. The company did not comment on its engagement with Xiamen Hithium, which also did not respond to requests for comment. Costs, Risks and Global Oversupply Reliance’s internal assessments concluded that proceeding without established Chinese cell technology would significantly raise costs and execution risks, particularly at a time when global battery markets are already grappling with excess capacity, the people said. Alternative technologies from Japan, South Korea and Europe were evaluated but found to be substantially more expensive and less competitive for large-scale deployment in India. While the pause does not pose an immediate financial threat—given Reliance’s core earnings from oil refining, retail and telecom—it represents a setback for Ambani’s ambitious green-energy roadmap. In 2021, the billionaire had announced plans to build four gigafactories as part of a $10 billion clean-energy investment push. A Sector-Wide Pattern Reliance is not alone. Other Indian conglomerates pursuing aggressive renewable expansion are also prioritising battery pack and container assembly over full-scale cell manufacturing due to similar technology bottlenecks.

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\n Adani Group has announced plans to build a multi-billion-dollar battery energy storage project in western India with a proposed capacity of 1,126 megawatts.
\n JSW Group, led by Sajjan Jindal, has begun operating a 30-megawatt battery energy storage pilot at Vijayanagar in Karnataka for captive use.

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\nBoth groups are scouting battery technologies but remain cautious on cell manufacturing, according to people familiar with their strategies.\n
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Policy Push Meets Reality
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\nIndia has long sought to develop domestic battery manufacturing capacity. In 2022, Reliance New Energy was among the companies selected under the government’s Production-Linked Incentive (PLI) scheme for advanced chemistry cell manufacturing.\n
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\nUnder the programme, companies were eligible for up to ₹181 billion in subsidies, tied to milestones such as achieving minimum manufacturing capacity and increasing local value addition from 25% within two years to 50% within five years.\n
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\nHowever, Reliance New Energy was penalised for missing deadlines under the scheme, highlighting how policy incentives alone may be insufficient in a market flooded with low-cost Chinese batteries.\n
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\nDespite near-term hurdles, India’s energy storage market is expected to grow rapidly. By 2035, installed storage capacity could reach 87 gigawatts, more than 300 times the level seen in 2024, according to BloombergNEF estimates.\n
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\nFor now, though, the lack of access to critical battery cell technology remains a key bottleneck—one that could slow India’s clean-energy ambitions unless geopolitical and supply-chain constraints ease.\n

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Reliance Puts Battery Cell Manufacturing on Hold After China Tech Talks Collapse

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