New Delhi: Mukesh Ambani, Asia’s richest businessman, is set to venture into electric vehicle (EV) battery manufacturing, a move that marks a significant expansion of Reliance Industries Ltd (RIL) into the green energy sector. The Indian government has approved a ₹3,620 crore production-linked incentive (PLI) to support the establishment of a 10 gigawatt-hour (GWh) battery manufacturing unit by RIL.
The approval comes as part of the government’s broader initiative to promote advanced chemical cell (ACC) battery storage technology under the PLI scheme. The Ministry of Heavy Industries had received seven bids through a global tender process, aimed at fostering the domestic production of ACC batteries. Among the bidders were notable companies such as ACME Cleantech Solutions Pvt Ltd, Amara Raja Advanced Cell Technologies Pvt Ltd, Anvi Power Industries Pvt Ltd, JSW Neo Energy Ltd, Lucas TVS Ltd, Reliance Industries Ltd, and Waaree Energies Ltd.
Following a thorough evaluation process, six companies were shortlisted for financial assessment. Ultimately, Reliance Industries Ltd emerged as the top contender, securing the contract for the 10 GWh battery storage unit based on the Quality and Cost Based Selection System (QCBS). The ministry highlighted that RIL achieved the highest overall score, ensuring its selection under the PLI scheme.
The government’s PLI scheme for ACC battery storage is part of a broader national effort to develop a robust EV battery manufacturing ecosystem in India. In May 2021, the Union Cabinet set an ambitious target to establish a manufacturing capacity of 50 GWh, with a budget of ₹18,100 crore dedicated to the National Programme on ACC Battery Storage. This initiative is expected to bolster India’s transition to sustainable energy and reduce reliance on imports for key components in the EV supply chain.
In related market developments, shares of Reliance Industries experienced a modest increase on Wednesday. According to data from the Bombay Stock Exchange (BSE), RIL’s stock closed slightly higher at ₹3,029.80, reflecting a ₹10.20 rise from the previous day. Earlier in the day, the stock had briefly touched a high of ₹3,034 before settling. On Tuesday, the company’s shares closed at ₹3,019.60.
Reliance Industries’ entry into the EV battery manufacturing space is seen as a strategic move that aligns with the global shift towards sustainable energy solutions. As the company gears up to establish its 10 GWh battery unit, industry observers anticipate that this development will play a crucial role in shaping India’s future in the green energy sector.
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