Mukesh Ambani, Asia’s richest industrialist and chairman of Reliance Industries, is expanding his business empire into one of the most promising sectors: electric vehicle (EV) batteries. This new venture not only reflects Ambani’s ambitious vision but also represents a significant shift in the Indian energy landscape.
Entry into the EV Battery Market
Reliance Industries Limited (RIL) has been awarded a substantial 10 GWh Advanced Cell Chemistry (ACC) battery storage plant under the Production Linked Incentive (PLI) scheme. This decision, based on the Quality and Cost Based Selection (QCBS) mechanism, allows Ambani to capitalize on the burgeoning EV market. The government’s PLI scheme provides a benefit of Rs 3,620 crore, underlining the strategic importance of this move.
Expanding Market Potential
The EV battery market in India, valued at approximately Rs 49,000 crore ($5.9 billion) in 2023, is projected to almost double to Rs 81,000 crore ($10.14 billion) by 2028. The significant growth potential in this sector is a major driver for Reliance’s new venture. By entering this high-growth market, Reliance aims to bolster its presence in the green energy sector and contribute to the transition towards sustainable transportation.
Competitive Bidding Process
The Ministry of Heavy Industries issued a global tender for the ACC Manufacturing PLI scheme, with seven companies vying for the opportunity. The bidders included notable names such as ACME Cleantech Solutions Pvt Ltd, Amara Raja Advanced Cell Technologies Pvt Ltd, and JSW Neo Energy Limited, among others. The competitive bidding process involved a transparent evaluation of technical and financial proposals, ultimately resulting in Reliance Industries emerging as the top-ranked bidder.
How Reliance Secured the Bid
The bid process, conducted through the Government of India’s CPP portal, involved detailed scrutiny of both technical and financial aspects. Reliance’s proposal was ranked highest based on its combined technical and financial scores, securing the 10 GWh ACC capacity. The remaining companies were placed on a waiting list, highlighting the competitive nature of the tender process.
Impact and Future Prospects
Mukesh Ambani’s entry into the EV battery manufacturing sector is poised to intensify competition and drive innovation in the market. Reliance’s significant investment and advanced technological capabilities are expected to accelerate the development and adoption of electric vehicles in India. This move aligns with the broader push towards green energy and sustainable practices, reinforcing Reliance’s position as a leader in diverse industrial sectors.
