China Blocks Key Technology, Reliance’s Lithium-Ion Battery Project in India Put on Hold

Reliance Industries, India’s most valuable company, has temporarily halted its plan to manufacture lithium-ion battery cells in India, according to a Bloomberg report. The pause comes after the company was unable to secure crucial technology from China.

Tech Partnership Falls Through
Reliance had planned to begin battery cell production this year in partnership with Xiamen Hithium Energy Storage Technology Co., China, under a licensing agreement. However, negotiations broke down after the Chinese company withdrew from the deal.

While Reliance has already imported machinery for battery energy storage container assembly and cell production, the absence of Chinese technology has stalled the actual manufacturing of cells. China has recently imposed restrictions on exporting key clean energy technologies to maintain its strategic advantage, making it challenging for foreign companies to manufacture locally in India.

Shift in Focus to BESS
Following this setback, Reliance is now focusing on Battery Energy Storage Systems (BESS) to store electricity for its renewable power projects. A company spokesperson stated that there has been no change in the company’s overall energy storage plans, which continue to include BESS manufacturing, battery pack production, and cell manufacturing.

Background of Reliance’s Battery Plans
In August 2025, Mukesh Ambani informed shareholders that Reliance’s battery gigafactory would start operations in 2026. Reliance had announced four gigafactories in 2021 as part of a $10 billion investment in its green energy business. Internal teams concluded that without reliable Chinese cell technology, costs would escalate, and project risks would increase significantly.

Alternative Technologies Considered
Sources revealed that alternatives from Japan, Europe, and South Korea were evaluated but found to be expensive and less competitive for large-scale production in India. India has long aimed to develop indigenous battery manufacturing capacity. In 2022, Reliance New Energy, Reliance’s renewable energy unit, was among three companies to win bids under the Production-Linked Incentive (PLI) program for battery cell manufacturing, supporting the government’s goal of reducing reliance on imported cells for electric vehicles.

Despite the current delay, Reliance continues to invest in its green energy ambitions and aims to expand its energy storage capabilities in India.