Reliance Industries Halts Lithium-Ion Cell Production Plans Following Failed Technology Deal with Chinese Supplier
Reliance Industries Ltd. has halted its plans to produce lithium-ion battery cells in India due to unsuccessful negotiations for technology transfer with China's Xiamen Hithium Energy Storage Technology Co. The company will now concentrate on assembling battery energy storage systems for its renewable projects, raising concerns about India's ability to meet its net-zero emissions target by 2070. Other Indian firms, such as Adani and JSW Group, are also pivoting towards BESS assembly amid similar challenges in cell manufacturing.
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Reliance Industries Ltd. has suspended its plans to manufacture lithium-ion battery cells in India after failing to secure technology from China's Xiamen Hithium Energy Storage Technology Co. This setback has prompted the company to shift its focus to assembling battery energy storage systems (BESS) for its renewable projects.
The discussions with Hithium stalled due to China's tighter controls on technology transfers. Despite the pause in cell manufacturing, which does not have an immediate financial impact on Reliance, it raises concerns about the broader ambition of supporting India's net-zero emissions target by 2070.
Other Indian conglomerates, including Adani and JSW Group, are also focusing on BESS assembly rather than full-scale cell manufacturing. India's energy storage market is expected to reach 87 gigawatts by 2035, significantly increasing from current levels.
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