Reliance Halts Battery Cell Manufacturing in India Over China Tech Curbs | Quick Digest

Reliance Halts Battery Cell Manufacturing in India Over China Tech Curbs | Quick Digest
Reliance Industries has paused its lithium-ion battery cell manufacturing plans in India after failing to secure essential Chinese technology. This move highlights challenges for Indian conglomerates in building an independent clean energy supply chain amid China's export restrictions. The company will now focus on assembling battery energy storage systems.

Reliance pauses lithium-ion battery cell manufacturing in India.

Failure to secure critical Chinese technology cited as the reason.

China's export restrictions impacted technology transfer talks.

Reliance shifts focus to assembling battery energy storage systems.

Highlights broader challenges for India's clean energy supply chain.

Reliance Industries Ltd. has halted its ambitious plans to manufacture lithium-ion battery cells in India, a key component of its $10 billion clean energy investment strategy announced in 2021. The decision stems from the company's inability to secure vital technology from China, primarily due to recent export restrictions imposed by Beijing. Reliance had been in discussions with Chinese energy storage firm Xiamen Hithium Energy Storage Technology to license its cell technology, but these talks stalled after Xiamen withdrew following China's curbs on overseas technology transfers. This development underscores the difficulties even major Indian conglomerates face in establishing an independent clean energy supply chain, as China maintains its technological leadership in the global battery market. Initially aiming to commence cell manufacturing this year, Reliance has now shifted its strategy to focus on assembling battery energy storage systems (BESS) and packs for its renewable energy projects. An internal review by Reliance reportedly found that alternative technologies from Japan, Europe, and South Korea were not cost-effective at the required scale. This setback not only affects Reliance's specific goals but also poses challenges for India's broader objective of localizing battery production, which is crucial for achieving its 2070 net-zero emissions target. Other Indian companies are reportedly encountering similar hurdles in this sector. The news emphasizes the impact of geopolitical and regulatory challenges on global clean energy transitions and supply chain realities.
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