Reliance Industries has denied reports that it has paused its plans for lithium-ion battery cell manufacturing in India, stating that its manufacturing strategy remains unchanged. This comes in response to a report that the company has put its plans on hold after discussions with a Chinese technology partner, Xiamen Hithium Energy Storage Technology, stalled.

According to sources familiar with the matter, Reliance had intended to begin lithium-ion battery cell production this year and was in talks with Xiamen Hithium to license its lithium iron phosphate (LFP) cell technology. However, these discussions reportedly ended after Xiamen Hithium withdrew from the proposed partnership due to Beijing's tighter controls on overseas technology transfers in sensitive sectors like batteries and clean energy.

A Reliance spokesperson, in an emailed response, stated that "BESS manufacturing, battery pack manufacturing, and cell manufacturing have always been part of our energy storage plans and we are progressing well in their execution". The company, however, did not comment on its relationship with Xiamen Hithium.

The report of Reliance pausing its battery cell plans highlights the challenges Indian companies face in localizing critical clean energy technology. China's increased scrutiny of clean energy technology exports, aimed at protecting domestic advantages, is complicating localization efforts for overseas manufacturers. Other Indian conglomerates, such as Adani Group and JSW Group, are also prioritizing battery pack and container assembly over full-scale cell manufacturing as they seek viable technologies.

Reliance New Energy was among the companies that won bids under the Indian government's production-linked incentive (PLI) scheme for advanced chemistry cell manufacturing in 2022, which offers subsidies tied to project milestones. Under this initiative, companies are required to achieve a minimum committed manufacturing capacity and at least 25% local value addition within two years of signing the agreement, increasing to 50% within five years.

Reliance has committed to achieving net-zero carbon emissions by 2035, with its New Energy proposition being key to achieving this goal. This includes setting up a battery gigafactory by 2026 for manufacturing battery chemicals, cells and packs, as well as containerized energy storage solutions and a battery recycling facility. The company aims to produce Lithium Iron Phosphate (LFP) based solutions and is fast-tracking commercialization of its sodium-ion battery technology.

Despite the challenges in securing cell technology, Reliance is moving forward with its plans to assemble battery energy storage systems (BESS) for its own renewable power projects. The company has also invested in glass and Polyolefin Encapsulant (POE) film manufacturing, which have synergies with its chemicals and materials business.