Reliance Denies Battery Plan Pause Amid Tech Deal Reports
Overview
Reliance Industries categorically denied reports of pausing its battery manufacturing plans, reaffirming commitment to its world-leading energy storage ecosystem. The conglomerate stated its projects are progressing on schedule, countering claims of stalled lithium-ion cell technology licensing talks with a Chinese firm.
Stocks Mentioned
Reliance Reaffirms Battery Manufacturing Ambitions
Reliance Industries Ltd. issued a strong denial Monday regarding a Bloomberg News report that suggested a pause in its battery storage manufacturing plans. A company spokesperson stated unequivocally that there has been "no change" in their strategic objectives to create a world-leading battery storage manufacturing ecosystem, asserting that these plans are "progressing well in line with our target timelines."
Reported Tech Hurdles and China Curbs
The Bloomberg report, citing unnamed sources, claimed that Reliance had halted plans to manufacture lithium-ion battery cells in India. This was reportedly due to failed negotiations with Chinese firm Xiamen Hithium Energy Storage Technology to license cell technology. The talks allegedly stalled following China's implementation of curbs on overseas technology transfers in critical sectors.
Company's Broad Strategy
Reliance Industries, led by Mukesh Ambani, has aimed to begin cell manufacturing this year. The company's stated goal encompasses a full spectrum of battery storage solutions, from cells to containerized energy storage systems (ESS). While the company denies any disruption, the reported failure to secure Chinese technology highlights the complexities of accessing advanced components for India's burgeoning renewable energy and electric vehicle sectors. Beijing's October announcement requiring export permits for lithium battery components further tightens global supply chains for this critical technology.
