Adani Group is in early discussions with BYD, a Chinese electric vehicle maker, about a possible partnership to produce batteries in India, according to sources cited by Bloomberg.

The talks are reportedly led by Gautam Adani and took place as recently as last week, with the aim of supporting Adani’s push into clean energy and battery manufacturing.

To navigate ongoing diplomatic tensions between India and China, any agreement would likely involve BYD subsidiaries outside China, the sources said.

Adani Green Energy Ltd., a unit of the group and India’s largest renewable power producer, is seeking technology partnerships to support large-scale production of lithium-ion cells for both electric vehicles and energy storage.

The discussions are still at a preliminary stage, and may not move forward, according to the sources.

Adani has also approached other Chinese renewable energy companies, including Beijing Welion New Energy Technology, during a recent visit to China.

The group is expanding its green energy investments and operates major solar power and manufacturing facilities in India.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ India’s battery market surge creates strategic imperatives beyond geopolitical tensions

India’s battery market represents one of the world’s fastest-growing opportunities, projected to more than double from $7.20 billion in 2024 to $15.65 billion by 2029 at a compound annual growth rate of 16.80%1.

This growth explains why Adani is pursuing technology partnerships despite geopolitical complexities. While India-China tensions caused Chinese foreign direct investment to decline from its 2015 peak of $705.25 million2, bilateral trade still reached a record $138.48 billion in 20242.

The numbers highlight a practical reality: economic opportunities can often outweigh political friction when market potential is significant.

Adani’s focus on battery technology aligns with India’s renewable energy goals, where the conglomerate already operates 15.8 gigawatts of renewable capacity with plans to reach 50 gigawatts by 2030.

2️⃣ Chinese battery technology dominance makes partnerships unavoidable for global competitors

Asia controls 84% of global lithium-ion battery production capacity, with China leading this dominance3.

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