Reliance Industries seeks extension for EV battery-making plant setup

Reliance had previously indicated the second half of 2026 as the timeline to launch operations at its battery Gigafactory in Jamnagar

Reliance Industries’ electric vehicle battery manufacturing unit has requested an extension from the federal government to establish its production facility under the production-linked incentive (PLI) scheme, the company announced on Tuesday. However, it did not specify the duration of the extension sought or the reason for the delay.  

 

In March 2022, Reliance secured incentives under the government’s Rs 181 billion ($2.07 billion) PLI scheme to set up 5 gigawatts (GW) of local manufacturing capacity for advanced chemistry cells (ACC). The scheme aimed to boost domestic battery production and support India’s electric vehicle (EV) push, which targets increasing EVs to 30 per cent of total car sales. Currently, EVs comprise only about 2 per cent of the market.  

 

 

Under the scheme, companies were required to establish manufacturing facilities within two years of signing the agreement. The firms were also mandated to achieve a minimum "committed capacity," with at least 25 per cent local value addition within two years and 50 per cent within five years.  

 

Reliance had originally planned to build a 10 GWh battery capacity with production-linked incentives amounting to an estimated $400 million. Along with Reliance’s subsidiary, Rajesh Exports and a unit of Ola Electric Mobility Ltd had also won bids under the scheme to develop battery cell plants, contributing to a cumulative 30 GWh capacity.  

 

Delay and government-imposed penalty  

Reliance New Energy Battery Storage Ltd (RNEBSL), a step-down subsidiary of Reliance Industries, received a notice from the Ministry of Heavy Industries on March 3, imposing liquidated damages for the delay in meeting Milestone 1 under the programme agreement. The penalty has been set at 0.1 per cent of the Rs 5 billion ($60.7 million) performance security per day of delay, effective from January 1, 2025. As of March 3, the accumulated penalty stood at Rs 31 million ($355,293).  

 

RNEBSL has requested an extension for achieving Milestone 1 but has not disclosed the revised timeline or the reasons behind the delay.  

 

Future plans for the Jamnagar gigafactory   

Reliance had previously indicated that operations at its battery Gigafactory in Jamnagar, Gujarat, would commence in the second half of 2026. Initially, the plant will focus on assembling Battery Energy Storage Systems (BESS) to serve utility-scale, residential, commercial, and mobility markets. As the facility develops, it will expand into full-scale cell manufacturing and battery chemical production, strengthening Reliance’s position in the energy storage sector.  

 

Once fully operational, the Jamnagar facility will have an annual production capacity of 30 GWh, contributing significantly to India’s clean energy transition.  

 

Reliance’s strategic investments in battery technologies  

Reliance has been actively investing in battery technology to bolster its energy storage ambitions. The conglomerate owns stakes in multiple battery development firms, including:  

 

- LithiumWerks (US) – A lithium iron phosphate (LFP) battery manufacturer  

- Faradion (UK) – A sodium-ion battery technology company  

- Ambri (US) – A liquid metal battery developer, in which Reliance was an investor and is positioned to take ownership following Ambri’s recent bankruptcy proceedings  

 

With these investments, Reliance aims to develop a strong presence in advanced energy solutions, enhancing India’s self-reliance in battery production and positioning itself as a key player in the global battery supply chain.