Reliance Industries, India’s largest conglomerate, has denied reports that it has put on hold plans to manufacture lithium-ion battery cells in the country, insisting that its clean-energy ambitions remain fully intact. The denial followed a Bloomberg report suggesting that Reliance had slowed or paused cell manufacturing after failing to secure access to Chinese battery technology. A company spokesperson confirmed that there had been “no change” in plans to build an end-to-end battery storage ecosystem. According to Reliance, work across these segments is continuing in line with previously announced timelines.
“Reliance Industries strongly and categorically affirms that there has been no change in our plans for creating a world leading battery storage manufacturing ecosystem from Cell to containerised ESS (energy storage system) and that they are progressing well in line with our target timelines,” read an email by the Reliance spokesperson.
So far, the Indian conglomerate has been in talks with Xiamen Hithium Energy Storage Technology, a Chinese supplier specialising in lithium iron phosphate battery cells, to license proven technology for large-scale production in India. These discussions reportedly stalled after Xiamen withdrew, following tighter controls imposed by Beijing on overseas technology transfers in sensitive sectors. China dominates global battery manufacturing, not only in terms of scale but also in process expertise, cost efficiency, and supply-chain integration. For Indian firms, access to this technology has been critical to accelerating domestic manufacturing without incurring prohibitive costs. Beijing’s export controls on lithium battery components, announced last year, have made such partnerships increasingly difficult.
So far, Reliance has invested in machinery for both cell production and storage system assembly, hinting that it has not abandoned its broader plans. However, internal assessments reportedly concluded that proceeding with cell manufacturing without access to established Chinese technology would significantly raise costs and execution risks. This calculation has become more acute as global battery markets grapple with excess capacity and falling prices, driven largely by Chinese producers.
This comes at a time when India has been betting big on clean energy – Indian PM Narendra Modi has set an ambitious target of achieving net-zero emissions by 2070, with large-scale deployment of renewable power and energy storage playing a central role. Domestic battery manufacturing is seen as critical to reducing dependence on imports, particularly from China, and to supporting electric vehicles and grid-scale storage. Other major Indian conglomerates, including the Adani Group and JSW Group, are also prioritising battery pack assembly and storage systems rather than full cell manufacturing. Industry insiders say that without access to competitive technology and supply chains, domestic cell production struggles to achieve economic viability.
India has sought to catalyse domestic battery manufacturing through generous incentives as well. In 2022, Reliance New Energy was among the companies selected under the government’s production-linked incentive scheme for advanced chemistry cell manufacturing. The programme offered subsidies of up to ₹18,100 crore, tied to milestones aimed at building 30 gigawatt-hours of domestic capacity. Companies were required to meet strict targets for output and local value addition within defined timeframes. However, people familiar with the programme say these incentives have not been sufficient to offset structural disadvantages. Reliance New Energy was reportedly penalised earlier this year for missing certain deadlines, underscoring how difficult it has been to execute projects at the required pace.
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