Reliance Pauses Domestic Lithium Cell Production

Reliance Industries, India's largest conglomerate, has paused its plans to manufacture lithium-ion battery cells domestically after failing to secure technology from a Chinese partner, highlighting the challenges in building an independent clean energy supply chain amid geopolitical tensions.

The company, led by billionaire Mukesh Ambani, had aimed to begin cell production this year as part of its ambitious push into renewable energy. Discussions with Xiamen Hithium Energy Storage Technology, a Chinese supplier of lithium iron phosphate cells, broke down when the partner withdrew from the proposed licensing agreement. Sources familiar with the matter attributed the setback to Beijing's tightened restrictions on overseas technology transfers in strategic sectors, including clean energy components. These curbs, announced in October 2024, require exporters to obtain permits for lithium battery parts, aiming to safeguard China's dominance in battery processing and related technologies.

In response, Reliance has shifted its focus to assembling battery energy storage systems, or BESS, which house batteries for renewable power projects. A company spokesperson emphasized that the...