Reliance Pauses Battery Plans amid China Tech Curbs

Reliance suspends the plan to manufacture lithium-ion cells following a stalemate in the negotiation of Chinese-based storage technology.

Reliance Industries has shelved its hopes of producing lithium-ion battery cells in the country; it could not acquire Chinese storage technology, according to a report by Bloomberg News.

The conglomerate headed by Mukesh Ambani had intended on starting manufacturing of battery cells this year and was negotiating cell-related technology with Chinese energy storage company Xiamen Hithium Energy Storage Technology to license the technology. The negotiations, however, came to a standstill when the Chinese company withdrew from the table in response to the stricter policies on exporting technology to foreign markets by Beijing.

Consequently, Reliance is currently changing its approach to strategy, whereby it leverages the collaboration of battery energy storage systems rather than cell production, meaning that the company has altered its battery storage technology roadmap. The relocation is an indication of heightened problems facing international businesses that want to access high-end storage technology as geopolitical and regulatory obstacles increase.

It was unable to independently check the Bloomberg report, as was Reuters. Reliance Industries also failed to respond to requests outside of regular business working hours.

Last October China forbade the export of lithium battery parts, and it now requires special permission to sell them abroad. Such actions have increased China's control over crucial storage technologies for energy storage and electric vehicle projects at the expense of global production strategies.