Reliance shifts battery sourcing strategy amid China tech curbs
By Cygnus | 19 May 2026
Summary
- Supply chain pivot: Reliance Industries is exploring battery component sourcing arrangements with Contemporary Amperex Technology Co. Limited (CATL) to support its energy storage ambitions at Jamnagar.
- Technology restrictions: China’s tighter controls on advanced battery manufacturing technology are making it harder for Indian firms to secure full lithium-ion cell production know-how.
- Execution focus: Reliance is prioritizing battery pack integration and energy storage system assembly to maintain timelines for its Gujarat green energy projects.
MUMBAI, May 19, 2026 — Reliance Industries is recalibrating parts of its clean energy manufacturing strategy as Chinese export controls complicate access to advanced battery cell technology.
According to reports, Reliance has held discussions with Contemporary Amperex Technology Co. Limited (CATL) and other suppliers regarding the procurement of battery components for large-scale Battery Energy Storage Systems (BESS) planned at its Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, Gujarat.
The move reflects broader challenges facing India’s battery manufacturing sector, where companies are attempting to build domestic storage capacity while navigating restrictions on technology transfers linked to advanced lithium-ion chemistry.
Shift from full manufacturing to assembly focus
Reliance had earlier outlined plans to establish an integrated battery manufacturing ecosystem as part of its renewable energy expansion strategy led by Chairman Mukesh Ambani.
However, industry analysts note that China has tightened oversight on exports of certain battery production technologies, particularly those related to lithium iron phosphate (LFP) chemistry and advanced cell manufacturing processes.
As a result, Indian firms are increasingly emphasizing battery module assembly, system integration, thermal management systems, and localized electronics manufacturing instead of fully indigenous cell chemistry production in the initial phase.
The Jamnagar complex is expected to serve as a major hub for solar equipment, green hydrogen infrastructure, and utility-scale energy storage systems.
Regulatory and policy considerations
The sourcing approach may also help Reliance navigate India’s foreign investment and security regulations.
Under India’s Press Note 3 framework, investments or deep technology partnerships involving companies from neighboring countries, including China, require additional government approvals and security reviews.
Commercial sourcing agreements for components are generally viewed as less sensitive than equity joint ventures or direct technology-transfer structures.
Reliance is also among the beneficiaries of India’s Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC), which encourages gradual domestic value addition in battery manufacturing.
Industry experts expect Indian battery manufacturers to increase localization over time through battery management systems, pack assembly, electronics, enclosures, and power management infrastructure, while continuing to rely partly on imported cells in the near term.
India’s storage demand continues to grow
India’s renewable energy expansion is expected to significantly increase demand for utility-scale battery storage over the next decade as solar and wind installations accelerate.
Analysts say battery storage systems will play a critical role in grid balancing, renewable integration, and energy reliability as India targets higher clean energy capacity.
A spokesperson for Reliance Industries has not publicly commented in detail on supplier discussions, while officials from Contemporary Amperex Technology Co. Limited have not issued a formal statement.
Why this matters
- India’s energy transition currently depends heavily on imported battery technology and supply chains.
- Reliance’s strategy highlights the growing importance of battery pack integration and grid-scale storage deployment.
- Chinese export controls are reshaping how global companies structure battery manufacturing partnerships.
- Large-scale storage projects are becoming essential to support India’s expanding renewable energy capacity.
- Domestic manufacturing incentives could gradually increase localization across India’s battery ecosystem.
FAQs
Q1. Why is Reliance sourcing battery components instead of manufacturing cells fully in-house?
Advanced battery manufacturing technologies remain heavily concentrated in China, and tighter export restrictions have complicated access to complete technology-transfer arrangements.
Q2. What role does CATL play in the battery industry?
Contemporary Amperex Technology Co. Limited is one of the world’s largest battery manufacturers and supplies energy storage and EV battery systems globally.
Q3. What is the Jamnagar Green Energy Giga Complex?
It is Reliance’s large-scale renewable energy manufacturing project in Gujarat focused on solar modules, battery storage systems, green hydrogen, and related clean energy infrastructure.
Q4. What is India’s ACC PLI scheme?
The Advanced Chemistry Cell Production Linked Incentive scheme is an Indian government initiative designed to encourage domestic battery manufacturing and reduce import dependence.