Indian manufacturer shelves lithium battery plans over China curbs

January 12, 2026

TL;DR

Reliance Industries has stopped its lithium-ion battery cell manufacturing plans.
A technology licensing deal with Chinese supplier Xiamen Hithium Energy Storage Technology Co. has been withdrawn.
Reliance will now focus on assembling battery energy storage systems (BESS) for its own projects.
China previously announced curbs on rare earth and related technologies starting October 2025.
China is reportedly seeking assurances from India that supplied technologies will not be diverted to the US.
India's energy storage market is projected to grow significantly by 2035.
China holds a dominant position in the global processing of critical battery minerals like cobalt, lithium, and manganese.

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