Reliance Industries Ltd. (RIL) is in advanced talks with Chinese battery manufacturing giant Contemporary Amperex Technology Co. Ltd. (CATL) and several other global suppliers. The negotiations aim to secure critical components for large-scale Battery Energy Storage Systems (BESS), according to people familiar with the development.
The move represents a strategic pivot for India’s largest conglomerate as it recalibrates its ambitious green energy timeline in response to tightening export restrictions imposed by Beijing on core clean-tech intellectual property.
A Strategic Pivot: From Cell Manufacturing to System Assembly
The discussions mark a structural shift in Reliance’s renewable strategy. Originally, the conglomerate intended to acquire advanced technical know-how to manufacture proprietary lithium-ion battery cells domestically. However, previous negotiations with CATL for a comprehensive technology transfer agreement fell through.
Faced with steep hurdles in accessing foundational cell-manufacturing technology, Reliance has shifted its operational focus. Instead of building cell chemistry from scratch, the company is now focusing heavily on importing pre-made cells from global suppliers and packaging them into utility-scale grid storage systems at its multi-billion-dollar green energy complex in Jamnagar, Gujarat.
De-Risking the Supply Chain
Securing a component supply deal with CATL would provide Reliance with a crucial second source of specialized hardware. RIL already has an existing clean-energy partnership with another Chinese player, Xiamen Hithium Energy Storage Technology Co. However, that alliance has hit unexpected regulatory and logistical roadblocks in recent months, slowing down deployment timelines.
Partnering with CATL—the world’s largest battery manufacturer—allows Reliance to diversify its procurement pipeline, hedge against geopolitical friction, and lock down premium inventory needed to scale production.
The Race Against Government Deadlines
The urgency behind these supply chain negotiations is further heightened by stringent domestic timelines. Under the Indian government’s Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, Reliance New Energy Battery Storage Ltd. was granted financial incentives to establish 5 gigawatt-hours (GWh) of local manufacturing capacity.
The PLI framework mandated strict execution milestones within two years of signing. Having missed its initial implementation targets, the subsidiary was served an official notice by the Ministry of Heavy Industries. The delay has triggered liquidated damages, subjecting the company to a daily penalty of 0.1% on its ₹500 crore ($60.7 million) performance security baseline since January 1, 2025. Securing ready-to-assemble components from CATL is seen as the fastest route to get the Jamnagar plant fully operational and stop further financial penalties.
India’s Energy Storage Landscape
| Metric / Milestone | Projected Capacity / Target | Strategic Importance |
| India’s Clean Energy Target | 500 Gigawatts (GW) by 2030 | Requires massive grid stabilization to handle intermittent solar and wind power inputs. |
| Projected Domestic BESS Market | 336.7 Gigawatt-hours (GWh) by 2035 | Represents a 115-fold market expansion from 2025 baselines, according to BloombergNEF. |
| Reliance Jamnagar Complex | India’s Largest Storage Facility | Designed as an integrated hub spanning solar PV, green hydrogen electrolyzers, and power electronics. |
When asked for a statement regarding the ongoing negotiations, a Reliance spokesperson stated that the company “evaluates various opportunities on an ongoing basis,” adding that it does not comment on media speculation and will make formal stock exchange disclosures as required. CATL representatives have declined to comment on the matter.
