Reliance halts lithium cell plans after China tech talks fail

Reliance Industries has paused plans to manufacture lithium-ion battery cells in India after failing to secure technology from China, according to sources cited by Bloomberg.

The Indian conglomerate, led by Mukesh Ambani, had been negotiating with Xiamen Hithium Energy Storage Technology for licensing, but talks fell through due to China’s restrictions on overseas tech transfers.

Reliance is now prioritizing the assembly of battery energy storage systems for its renewable power projects.

This shift comes as India pushes to develop local battery manufacturing and reduce reliance on imports for EVs.

Reliance New Energy, the group’s renewables unit, had previously won a government contract to build battery cell plants but was penalized for missing project milestones.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Reliance’s sodium-ion pivot could ease the lithium cell setback

Reliance bought UK firm Faradion in 2024 and picked up proprietary sodium-ion tech. It avoids lithium and cobalt, plus copper or graphite 1.
The Jamnagar factory (Jamnagar, Gujarat) targets a second-half 2025 start, with this chemistry planned for the site 2.
Manufacturers can reuse most lithium-ion processes and gear, while sodium is abundant with lower raw input costs 2.
The pause on lithium-ion cells may not derail near-term storage plans, since grid-scale systems (large battery systems connected to the power grid) can use this path without Chinese tech transfers; suitability for electric vehicle (EV) packs needs more commercial proof.

Specialists can win work as Indian groups shift to battery assembly

NTPC (formerly National Thermal Power Corporation, India’s state-owned power producer) sought bids for 4 gigawatt-hours (GWh) of battery storage across 11 thermal plant sites. The call sets a 12-year service life and includes annual maintenance 3.
SECI (Solar Energy Corporation of India, a state-owned renewable energy agency) awarded 1.2 gigawatts (GW) of solar-plus-storage in January 2026. The package includes 300 megawatts (MW)/3,600 megawatt-hours (MWh) of systems and keeps the tender pipeline busy 4.
Vendors of battery management systems and energy management software can chase this wave. Thermal management and safety testing providers can do the same. Engineering, procurement, and construction (EPC) firms can do the same as large Indian conglomerates move from cell output to system integration.
India sought a cumulative 171 GWh of capacity by mid-2025. Less than 220 MWh was online, which leaves a large delivery gap for specialized service providers 3.