Reliance Pauses India Battery Cell Plan After China Tech Talks Fail
Overview
Reliance Industries halted its ambitious lithium-ion battery cell manufacturing plans in India after failing to license technology from Chinese firm Xiamen Hithium. This setback, attributed to Beijing's export curbs, forces Reliance to refocus on assembling battery energy storage systems. The development highlights significant challenges in building an independent clean energy supply chain, impacting India's 2070 carbon-zero targets and broader 'Make in India' initiatives.
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Reliance Industries Ltd. has paused its ambitious plans to manufacture lithium-ion battery cells in India. The move follows a failed attempt to license technology from Chinese supplier Xiamen Hithium Energy Storage Technology Co. This setback directly impacts India's push for an independent clean energy supply chain and its 2070 net-zero targets.
Beijing's increasing curbs on overseas technology transfers in strategic sectors have complicated localization efforts. Reliance had aimed to start cell manufacturing this year. Discussions with Xiamen Hithium stalled amid these restrictions.
A spokesperson for Reliance maintained that there has been no change in the company's overall energy storage plans. They stated that BESS, battery pack, and cell manufacturing remain integral components and execution is progressing well. The company did not comment on its specific relationship with Xiamen Hithium.
Internally, Reliance teams reportedly concluded that proceeding without access to proven Chinese cell technology would significantly increase costs and execution risks. Assessments of alternative technologies from Japan, Europe, and South Korea found them to be substantially more expensive for large-scale deployment in India.
This pattern is mirrored across India Inc. Conglomerates like Adani Group and JSW Group are also prioritizing battery pack and container assembly over full cell manufacturing due to similar technology bottlenecks. Despite government incentives aimed at boosting local production, Reliance New Energy was penalized for missing deadlines, highlighting the difficulty in creating domestic manufacturing capacity against global market dynamics. The nation's energy storage market is projected for significant growth by 2035.
