Reliance in Talks with Chinese Battery Behemoth CATL & Others for Big Battery System Parts

Why It Matters

Securing diversified battery component sources enables Reliance to keep pace with India’s rapid renewable‑energy rollout while navigating China’s export restrictions, positioning the conglomerate as a key player in the nation’s emerging storage market.

Key Takeaways

• Reliance seeks CATL parts to diversify Jamnagar battery supply
• China's export curbs push Reliance toward pre‑made cell packaging
• India's storage market projected 336 GWh by 2035, 115× 2025
• CATL expands globally, targeting Europe, US, and Indian storage
• Adani also courting Chinese battery expertise, signaling sector-wide shift

Pulse Analysis

India’s power grid is racing to accommodate a 500‑gigawatt renewable capacity goal by 2030, a transition that hinges on large‑scale battery energy storage systems (BESS). BloombergNEF projects the country’s storage installations will swell to roughly 336 GWh by 2035, a 115‑fold increase from 2025 levels. Such growth creates a lucrative market for global battery manufacturers, especially Chinese firms that dominate cell production. The scale‑up also intensifies the need for reliable component supply chains, prompting Indian conglomerates to look abroad for partners.

Reliance Industries, India’s largest corporate group, is negotiating with CATL and other suppliers to secure parts for its upcoming Jamnagar BESS complex, the nation’s biggest storage hub. After a stalled technology‑transfer deal with CATL and recent roadblocks with Xiamen Hithium, Reliance has pivoted toward sourcing pre‑assembled cells and ancillary components, sidestepping Beijing’s tightening export controls on core battery technology. This approach allows the conglomerate to maintain momentum on its clean‑energy ambitions while mitigating the risk of dependence on a single vendor.

CATL’s aggressive global expansion—new factories in Germany, Hungary and Spain and licensing partnerships with Ford and Tesla—underscores its strategy to diversify beyond electric‑vehicle batteries into utility‑scale storage. By courting Indian players like Reliance and Adani, CATL aims to capture a share of the fast‑growing Indian market, which offers both volume and strategic foothold. However, the partnership landscape is shaped by geopolitical tensions, U.S. technology restrictions, and India’s own push for domestic capability, making the outcome of these talks a bellwether for the sector’s future.