Introduction: "Even the most powerful companies in India face challenges in building an independent clean energy supply chain."
(By Observer Network, Zhou Shengming; Editor: Gao Xin)
Bloomberg reported on January 12 that Reliance Industries Limited has suspended its plan to manufacture lithium-ion battery cells in India due to failure in obtaining technical support from Chinese battery companies.
It is known that Reliance Industries Ltd. is one of the largest and most influential conglomerates in India. Its chairman, Mukesh Ambani, has a personal fortune exceeding $110 billion (approximately RMB 77 billion) and is currently the richest person in Asia.
Indian Prime Minister Modi (left) and Mukesh Ambani (right) Bloomberg
In recent years, Reliance Industries has been pushing for a transition from traditional fossil fuels to renewable energy and clean technologies, and is seen as one of the key corporate forces in India's energy transition and industrial upgrading.
"This change shows that even the most powerful companies in India face challenges in building an independent clean energy supply chain," Bloomberg commented.
According to insiders, the internal team at Reliance Industries assessed that continuing the project without access to mature Chinese cell technology would significantly increase costs and add execution risks.
Insiders also said that the company evaluated alternative technology solutions from Japan, Europe, and South Korea, but these options were too costly and lacked competitiveness, making large-scale deployment in the Indian market difficult.
Previously, Reliance Industries had hoped to cooperate with Chinese phosphate lithium iron battery supplier "Xiamen Hicome Energy Technology Co., Ltd." to discuss cell technology licensing. It is known that Reliance Industries had originally planned to start cell manufacturing in India this year.
Insiders said that China has strengthened restrictions on the transfer of key field technologies abroad. As a result, Hicome Energy withdrew from the proposed cooperation, and the related negotiations stalled.
Bloomberg commented that if India lacks a smoother bilateral relationship with China, the goal set by Indian Prime Minister Modi to achieve carbon neutrality by 2070 will be difficult to make substantial progress.
India has long hoped to establish local battery manufacturing capabilities. In 2022, the Indian government introduced the Production Linked Incentive (PLI) scheme to reduce dependence on imported battery cells for electric vehicles. Under this program, relevant companies can receive up to 18.1 billion rupees (approximately RMB 1.4118 billion) in subsidies, provided they meet project milestones, totaling the construction of 30 gigawatt-hours of advanced chemical battery capacity.
It is known that Reliance New Energy, a renewable energy subsidiary of Reliance Industries, was penalized last year for failing to meet phase goals on time.
Currently, Reliance Industries denies any changes in its strategy for renewable energy and claims that the related projects are progressing smoothly.
Insiders said that due to setbacks in producing lithium battery cells, the company has shifted its focus to the assembly business of battery energy storage systems (BESS), providing containerized energy storage systems for its own renewable energy projects.
This article is exclusive to Observer Network and may not be reprinted without permission.
Original: toutiao.com/article/7594419345510384143/
Statement: This article represents the views of the author.