Reliance Pauses Lithium-Ion Cell Manufacturing Over China Tech Transfer | Quick Digest

Reliance Pauses Lithium-Ion Cell Manufacturing Over China Tech Transfer | Quick Digest
Reliance Industries has paused its plans to manufacture lithium-ion battery cells in India due to the inability to secure technology from a Chinese partner. This setback is attributed to China's tightened restrictions on overseas technology transfers. The conglomerate is now refocusing on assembling battery energy storage systems.

Reliance pauses lithium-ion battery cell production plans in India.

Failed to secure critical technology from Chinese supplier Xiamen Hithium.

China's tech transfer curbs caused the partnership's collapse.

Reliance shifts immediate focus to assembling battery energy storage systems.

Move highlights challenges for India's clean energy self-reliance.

Reliance maintains overall battery ecosystem plans, including sodium-ion tech.

Reliance Industries Ltd., a prominent Indian conglomerate, has reportedly paused its ambitious plans to manufacture lithium-ion battery cells in India. The decision stems from the company's inability to finalize a technology licensing agreement with China's Xiamen Hithium Energy Storage Technology Co.. Negotiations reportedly stalled after the Chinese firm withdrew from the proposed partnership, influenced by Beijing's escalating restrictions on overseas technology transfers in strategic sectors. This development underscores the significant challenges Indian businesses, including the country's largest, face in establishing a self-reliant clean energy supply chain and achieving India's net-zero emissions goals. Reliance had initially aimed to commence cell manufacturing this year as part of a broader $10 billion investment in green energy initiatives. The company's internal assessments indicated that proceeding without proven Chinese cell technology would lead to substantially higher costs and increased execution risks. Alternative technologies from other countries were deemed less competitive for large-scale deployment in India. Following this setback, Reliance is now reportedly prioritizing the assembly of Battery Energy Storage Systems (BESS) for its own expansive renewable power projects. Despite these specific challenges in lithium-ion cell manufacturing, a Reliance spokesperson has stated that there is no change in the company's overall plans for creating a comprehensive battery storage manufacturing ecosystem, encompassing cell, battery pack, and containerized ESS manufacturing, affirming that these plans are progressing well. This suggests that while a particular pathway for lithium-ion cell production has been affected, Reliance continues to pursue other battery technologies, such as sodium-ion, for which it acquired UK-based Faradion in 2024. This nuanced situation highlights the complexities of global technology transfer amidst geopolitical shifts affecting India's clean energy ambitions.
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