Reliance Industries, an Indian conglomerate, is in talks with China's CATL and other suppliers to purchase battery energy storage system components for its Jamnagar plant in Gujarat. The negotiations come as Reliance adjusts its renewable energy plans in response to tighter Chinese curbs on battery technology exports. The discussions represent a potential second supply source following delays in Reliance's partnership with Xiamen Hithium and come after earlier technology transfer discussions with CATL collapsed. However, no deal is certain. Reliance stated it evaluates opportunities on an ongoing basis and will make stock exchange disclosures when required. BloombergNEF has projected India's energy storage market will reach 336.7 GWh by 2035.
## Government Deadlines and Performance Penalties
Reliance faces regulatory pressure tied to India's Production Linked Incentive (PLI) scheme, which provides financial support for local manufacturing. The scheme required selected companies to establish plants within two years of signing their contracts. In March 2022, Reliance secured incentives to build 5 gigawatt-hours (GWh) of advanced chemistry cell (ACC) manufacturing capacity.
India's Ministry of Heavy Industries sent a notice to Reliance New Energy Battery Storage Ltd., a Reliance Industries subsidiary, after the company missed its first milestone. The company has requested additional time to meet obligations. The missed target triggered liquidated damages: a daily penalty of 0.1% applies to its 5 billion rupees (US$60.7 million) performance security from January 1, 2025.
## Reliance's Integrated Manufacturing Strategy
Reliance New Energy is constructing a green energy manufacturing complex in Jamnagar, Gujarat. Planned facilities include solar photovoltaic (PV) equipment; battery cells and storage systems; electrolysers; raw and auxiliary materials; power electronics; semiconductor production; and a research and development (R&D) center.
Reliance has stated its goal of achieving end-to-end manufacturing, including an integrated quartz-to-module chain in solar PV—production spanning from raw quartz through finished solar modules. The company says this approach supports energy security and decarbonization goals, including its net-zero target by 2035.
To reduce reliance on licensed technology alone, Reliance New Energy Ltd. (RNEL) acquired Faradion Ltd., a UK battery technology company, and purchased assets from Lithium Werks, a battery manufacturer, among other transactions. Reliance describes this buy-and-build model as aligned with its goal of helping India transition from a net energy importer to a net energy exporter through domestic technology ownership and manufacturing capacity.
