India’s Reliance Industries has put on hold its ambitious project to produce lithium-ion battery cells in the country after talks to get key technology from China fell through. This move, announced on January 12, 2026, shows the tough road ahead for Indian firms trying to build a strong clean energy chain without heavy reliance on foreign tech.
The decision comes as Reliance, led by billionaire Mukesh Ambani, aimed to kick off cell production this year. Sources say the company was in deep talks with Xiamen Hithium Energy Storage Technology, a Chinese firm, for licensing lithium iron phosphate tech, but Beijing’s strict rules on tech exports blocked the deal.
Background of Reliance’s Battery Push
Reliance first shared its big plans for battery making in 2021 as part of a push into green energy. The goal was to make India less dependent on imports, especially from China, which controls about 78 percent of global lithium-ion battery output.
This fits into India’s wider aim to grow its electric vehicle market and renewable power. By 2025, the country had set targets to have 30 percent of new car sales as EVs by 2030, but local battery production has lagged. Reliance wanted to build a massive gigafactory to produce cells for EVs and energy storage.
The company had lined up billions in investments. Reports show Reliance spent over 2.5 billion dollars on advanced battery tech deals in recent years. This included partnerships and buys to boost local skills.
Yet, raw materials remain a big issue. India lacks its own lithium and cobalt reserves, key for battery parts. This forces firms to look abroad, often to China, for supplies and know-how.
Why the Talks with China Failed
The main roadblock was China’s tight controls on sharing clean energy tech. Beijing has ramped up rules since 2024 to protect its lead in batteries and EVs. These curbs limit exports of key tech to keep an edge in global markets.
Reliance’s deal with Xiamen Hithium hit a wall when the Chinese side pulled back. Insiders say the talks stalled late last year, leading to the pause. This isn’t just a one-off; other Indian groups face similar snags.
For example, some firms have shifted to assembling battery packs instead of full cell making. This lets them use imported cells while building local skills over time.
Here are some key factors behind the failure:
- Strict Chinese export limits on battery tech since 2024.
- Rising tensions in global trade, making tech transfers harder.
- India’s push for self-reliance clashing with the need for foreign expertise.
Impact on India’s Clean Energy Goals
This pause could slow India’s drive for homegrown batteries. The country aims to cut oil imports and fight climate change, but without local cells, EV costs stay high. Experts predict this might delay India’s EV sales targets by two to three years.
Reliance’s move highlights wider supply chain risks. China dominates the market, producing over three-quarters of the world’s lithium-ion batteries as of 2025 data. India, in contrast, makes less than 1 percent.
Other Indian players like Tata and Adani are also pivoting. They focus on storage systems using imported parts. This helps in the short term but doesn’t solve the core issue of tech dependence.
| Country | Share of Global Lithium-Ion Battery Production (2025) | Key Players |
|---|---|---|
| China | 78% | CATL, BYD |
| South Korea | 10% | LG Energy, Samsung SDI |
| Japan | 7% | Panasonic |
| United States | 3% | Tesla, others |
| India | <1% | Emerging firms like Reliance |
This table shows the huge gap India needs to bridge. Without tech access, building capacity will take longer.
What Happens Next for Reliance
Reliance isn’t giving up on green energy. The company now plans to focus on battery energy storage systems. These assemble packs from imported cells, which is easier to start.
Sources say Reliance might look for tech from other places like South Korea or Japan. Talks with non-Chinese suppliers could pick up soon. The firm has also rushed some gear imports from China before new curbs hit in late 2025.
In the bigger picture, this ties into global shifts. The US and Europe are also trying to cut China reliance through laws like the Inflation Reduction Act of 2022, updated in 2025 with more EV incentives.
India’s government is stepping in too. New policies in 2026 offer subsidies for local battery plants, aiming to draw in global partners.
Broader Lessons for Global Supply Chains
This case points to rising risks in clean tech trade. As countries push for green goals, tech controls could spark more disputes. India’s story shows even big players like Reliance struggle without open markets.
Experts suggest India invest more in research. Building local labs and training could help over time. Recent events, like the 2025 global chip shortage, remind us how fragile supply chains are.
Reliance’s pause might push other firms to team up or seek new paths. For now, it underscores the need for diverse sources in the race to net-zero emissions.
What do you think about Reliance’s challenges in battery tech? Share your views in the comments and spread this article to spark discussion.
