Reliance Battery Ambitions On Track Despite Tech Setback Reports
Overview
Reliance Industries has categorically denied reports of pausing its lithium-ion battery manufacturing plans. A company spokesperson confirmed that their ambitious strategy to build a world-leading battery storage ecosystem is on track, progressing according to target timelines. The conglomerate remains committed to its Rs 75,000 crore investment in establishing a massive manufacturing hub in Jamnagar, Gujarat, aiming for significant production capacity by 2026.
Stocks Mentioned
Reliance Industries unequivocally denied reports on Monday claiming a halt to its ambitious battery manufacturing plans in India. A company spokesperson issued a strong statement affirming that the conglomerate's strategy to establish a world-leading battery storage ecosystem is proceeding precisely as scheduled.
Rs 75,000 Crore Giga Factory Push
The core of this initiative is Reliance's massive Rs 75,000 crore investment dedicated to building an integrated manufacturing ecosystem at the Dhirubhai Ambani Green Energy Giga Manufacturing Complex in Jamnagar, Gujarat. This sprawling facility is envisioned as the world's largest, most modern, modular, and integrated manufacturing hub for solar value chains, Battery Energy Storage Systems (BESS), and electrolysers. The company has already commenced construction on an advanced chemical battery manufacturing facility with an annual capacity of 30 GWh at the Jamnagar site.
On Track for 2026 Production
Reliance reiterated its timeline, targeting 2026 for the commencement of battery cell manufacturing. Chairman and Managing Director Mukesh Ambani had previously announced plans for the battery giga factory to start production in 2026, initially with a capacity of 40 GWh per year, with modular expansion capabilities to reach 100 GWh annually. The spokesperson noted that updates on the new energy business, including battery plans, are consistently shared during quarterly investor calls, with the next scheduled update anticipated on January 16 during the third quarter earnings call.
Diversified Battery Technology Strategy
The company's strategy encompasses BESS manufacturing, battery pack production, and cell manufacturing. Beyond lithium-ion technology, essential for high-performance automotive batteries, Reliance is actively advancing sodium-ion battery technology. This move is strategically significant as sodium-ion batteries are well-suited for stationary storage and two-wheeler applications due to the abundance of sodium. Reliance also plans to leverage the expertise of its US subsidiary, Lithium Werks, which possesses extensive knowledge in LFP (lithium-iron-phosphate) batteries, and its UK subsidiary, Faradion, to bolster its lithium-ion capabilities. This multi-pronged approach underscores Reliance's commitment to a comprehensive energy storage future.
