Reliance’s Battery Exit Sparks a Bigger Discussion  

Entrepreneur Vikas Vij has openly shared his thoughts on why Reliance Industries Ltd.  (RIL) decided to drop its plans for lithium-ion battery manufacturing in India. This has  started an important conversation in the country. He believes the main issue is not  about timing or government incentives, but rather about India’s ability to develop and  manage advanced technology on a global level. 

The Hithium Comparison: Size Versus Capability  

The debate includes a surprising comparison between Reliance, India’s largest  company, and Hithium, a Chinese lithium battery startup established in 2019. Even  though Hithium is almost 200 times smaller than Reliance, it reportedly chose not to  share its battery technology with the Indian company. Vij states that this choice was not  mainly about politics or negotiation power, but rather about technological expertise. 

Why Deep IP Matters in Battery Manufacturing  

Vij explains that companies like Hithium have invested years and significant amounts of  money in creating unique intellectual property through ongoing research and  development. He emphasizes that battery technology is not something that can be  easily set up. It requires extensive experimentation, pilot projects, safety testing, skilled  engineers, and the ability to accept failures before achieving success and reliability. 

Reliance’s Clean Energy Ambition Meets Reality  

Reliance makes nearly $10 billion in profits each year and has publicly pledged to move  from fossil fuels to clean energy. However, Vij argues that years of operating in a  protected market have made the company less willing to take risks on innovation.  Consequently, Reliance lacks essential elements like patented cell designs, unique  manufacturing methods, and in-depth production knowledge needed to create  advanced lithium-ion cells on its own.

A Weak Ecosystem Beyond One Company  

Vij points out that this issue is not just about Reliance. India lacks a complete battery  ecosystem. There is no smooth supply chain that connects mining for critical minerals,  making chemical precursors, producing advanced equipment, and having large-scale  testing facilities. Additionally, the country suffers from a shortage of specialized battery  scientists, automation engineers, and process experts, which is a result of years of  neglect in industrial research and development. 

Innovation Versus Financial Dominance  

Vij’s concerns extend beyond corporate strategies to India’s overall economic focus. He  argues that the country has often prioritized success in financial markets and domestic  dominance over achieving global technological leadership. While this may be profitable  in the short term, it hinders the development of world-class technology that can be  exported. 

A Warning for India’s Energy Future  

The cancellation of Reliance’s lithium-ion battery plans is more than just a business  choice. It highlights India’s lack of innovation and serves as a warning about the future.  If the country does not invest in long-term research and development, build a culture  that accepts risk and failure, and focus on global competitiveness, it will continue to  rely on foreign technology, even in areas crucial to its energy and economic future.