Reliance Industries has officially confirmed that its strategic plans for developing battery storage manufacturing remain unchanged, according to a company spokesperson. The confirmation addresses the company's comprehensive approach to entering the energy storage market through vertical integration.

Manufacturing Strategy Remains Intact

The company spokesperson emphasized that there have been no alterations to the planned development of battery storage manufacturing capabilities. This strategic initiative encompasses the entire production value chain, demonstrating the company's commitment to building a robust presence in the energy storage sector.

Comprehensive Production Scope

The manufacturing plans cover an extensive range of products and capabilities:

• Individual battery cell production
• Complete battery module assembly
• Containerised energy storage systems (ESS)
• End-to-end manufacturing integration

This comprehensive approach positions the company to serve various market segments within the energy storage industry, from component suppliers to complete system integrators.

Strategic Commitment to Energy Storage

The reaffirmation of these plans highlights the company's long-term vision for the energy storage market. By maintaining its original development timeline and scope, Reliance Industries demonstrates confidence in the growing demand for battery storage solutions across industrial and commercial applications.

The containerised ESS segment represents a particularly significant opportunity, as these systems provide scalable energy storage solutions for grid applications, renewable energy integration, and industrial backup power requirements.

Reliance Industries Ltd. has paused its plans to manufacture lithium-ion battery cells in India after failing to secure crucial technology from a Chinese supplier, highlighting the challenges faced by Indian companies in building independent clean-energy supply chains.

Failed Technology Partnership

The Mukesh Ambani-led conglomerate had been in discussions with Chinese lithium iron phosphate supplier Xiamen Hithium Energy Storage Technology Co. to license cell technology. However, these talks stalled after the Chinese company withdrew from the proposed partnership amid Beijing's curbs on overseas technology transfers in key sectors.

Strategic Pivot to Battery Storage Systems

The setback has prompted Reliance to refocus on assembling battery energy storage systems (BESS) — containers for its own renewable power projects. The company had originally aimed to begin cell manufacturing this year as part of its broader green energy ambitions.

A Reliance spokesperson clarified that there is no change in the company's overall plans, stating 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."

Impact on Green Energy Ambitions

In August, Mukesh Ambani told shareholders that Reliance's battery gigafactory will start in 2026. The richest person in Asia had announced four gigafactories in 2021 as part of a $10.00 billion investment push to pivot away from the empire's fossil-fuel origins.

Reliance's internal teams concluded that proceeding without access to proven Chinese cell technology would significantly raise costs and execution risks, particularly as global markets are already grappling with excess battery capacity. Alternative technologies from Japan, Europe and South Korea were assessed but deemed substantially more expensive and less competitive for large-scale deployment in India.

Industry-Wide Challenges

The pattern is mirrored across Indian conglomerates as they race to secure battery capacity to support rapidly expanding renewable power businesses. Adani Group and JSW Group, other powerful Indian conglomerates with ambitious clean energy plans, are also focusing on battery pack and container assembly rather than full-fledged cell manufacturing.

Government Incentive Program

In 2022, Reliance's renewable energy unit — Reliance New Energy — was one of three companies that won bids to build battery cell plants under a production-linked incentive program. The initiative offered manufacturers eligibility for as much as ₹181.00 billion ($2.00 billion) in subsidies tied to meeting project milestones aimed at creating a cumulative 30.00 gigawatt-hours of advanced chemistry cell capacity.

Reliance New Energy was penalized for missing deadlines under the program, demonstrating that current policy incentives are insufficient to create local manufacturing when the world is awash in cheap Chinese batteries.

Market Outlook

By 2035, India's energy storage market is expected to reach about 87.00 gigawatts of power capacity — more than 300 times what was installed in 2024, according to BloombergNEF estimates. This massive growth potential underscores the strategic importance of developing domestic battery manufacturing capabilities.