Reliance Industries Ltd (RIL) has halted its plans to begin manufacturing lithium-ion battery cells in India after talks to license key technology from a Chinese partner collapsed. The move underscores broader challenges in building a domestic clean-energy supply chain and highlights the strategic importance of access to advanced battery technology.
China Technology Partnership Falls Through
Reliance had been in discussions with a Chinese lithium iron phosphate (LFP) technology provider — Xiamen Hithium Energy Storage Technology Co. — to secure a licence for battery cell manufacturing. These talks reportedly fell apart after the Chinese company withdrew from the proposed partnership amid tightened export restrictions on sensitive technologies. Beijing’s heightened controls on overseas transfers in key clean-energy areas made it difficult for Reliance to obtain the necessary tech transfer.
The collapse of the deal has led Reliance to pause its ambitious plans to begin battery cell production this year, although the overall goal of building a battery ecosystem in India remains unchanged.
Shift Toward Battery Energy Storage Systems (BESS)
With direct cell-making plans on hold, Reliance appears to be placing greater emphasis on assembling battery energy storage systems (BESS). These systems, often built from imported cells, are used to store renewable energy and support grid stability as well as enterprise power solutions.
The pivot reflects a strategy to keep progressing in the energy storage domain while navigating the technology access challenges that have blocked local cell manufacturing.
Company Response And Denials
A spokesperson for Reliance has stated that there has been no fundamental change in the company’s battery plans, asserting that cell manufacturing, battery pack production and BESS assembly have always been part of its renewable energy strategy. The company insists it is continuing to develop its battery storage ecosystem as planned and that this pause does not signal abandonment of its long-term ambitions.
Strategic And Industry Implications
The setback for Reliance highlights broader structural challenges facing India’s clean-energy objectives and its goal of reducing dependence on imports for critical technologies. Battery cells comprise a key component of electric vehicles and large-scale renewable storage, yet much of the advanced technology and manufacturing capability remains concentrated in China, Japan, South Korea and parts of Europe.
Reliance reportedly evaluated alternatives from Japan, South Korea and Europe, but found them significantly more expensive and less competitive, particularly for large-scale deployment in India’s burgeoning energy market.
This development arrives while the country is pushing toward ambitious emissions-reduction targets and greater localisation of clean-energy manufacturing. The pause in cell production — even if temporary — could delay India’s ability to build indigenous battery capacity at scale, making it harder to compete with global peers.
What Comes Next
Reliance’s broader battery gigafactory plan — a multi-billion-dollar investment announced in recent years — is still slated to start operations in 2026, according to earlier company statements. How much the cell-making pause affects the overall timeline remains unclear, though industry observers say securing technology partnerships or fostering domestic innovation will be critical if India is to achieve larger battery manufacturing objectives.
