Reliance halts cell making plans after Chinese firm withdraws from partnership: Report
Reliance Industries has paused its plans to manufacture lithium-ion battery cells in India after failing to secure Chinese technology, according to a report. This move marks a significant shift for Reliance, which had aimed to commence cell manufacturing this year, but now finds itself navigating stalled technology partnerships and regulatory barriers.
According to a report in Bloomberg, the Mukesh Ambani-led conglomerate had been in discussions with Xiamen Hithium Energy Storage Technology Co, a Chinese lithium iron phosphate supplier, to license cell technology. Those negotiations ended abruptly after Xiamen Hithium withdrew from the proposed partnership, influenced by Beijing’s restrictions on technology transfers in strategic sectors, the people said.
The setback has prompted Reliance to focus on assembling battery energy storage systems (BESS) for its own renewable power projects instead, the report added. This strategic pivot occurs as other Indian conglomerates similarly strive to secure battery storage capacity to support expanding renewable power portfolios, but encounter technology access barriers.
China’s enhanced scrutiny of clean-energy technology deals, aimed at protecting domestic advantages, has complicated localisation efforts by foreign companies. The trend persists despite recent diplomatic improvements between India and China, as both countries face high US import tariffs.
A Reliance spokesperson said there had been "no change" in the company’s plans in an emailed reply, adding that BESS manufacturing, battery pack manufacturing and cell manufacturing have always been part of its energy storage plans.
In August, Mukesh Ambani told shareholders that Reliance’s battery gigafactory would begin operations in 2026. The current pause in cell-making does not pose an immediate financial threat to the group, which continues to derive most of its revenue from oil refining and consumer businesses. However, it underscores the operational challenges in realising the company’s green energy ambitions.
Reliance’s internal teams have determined that proceeding without proven Chinese cell technology would raise costs and execution risks, particularly as global markets are already grappling with excess battery capacity, the report added. The company assessed alternative technologies from Japan, Europe, and South Korea, but found them substantially more expensive and less competitive for large-scale deployment in India.
The technology bottleneck is not unique to Reliance, as Indian firms across sectors seek solutions to support their renewable energy expansion. These efforts remain hindered by technology transfer issues, which persist despite broader attempts to normalise trade and diplomatic relations between India and China.
