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Reliance Industries has sought an extension from the Indian government to establish its electric vehicle (EV) battery manufacturing facility under the production-linked incentive (PLI) scheme, the company announced on Tuesday. However, it did not specify the duration of the extension or the reasons for the delay.
In March 2022, Reliance secured incentives under the government’s ₹181 billion ($2.07 billion) PLI scheme to develop 5 gigawatts (GW) of advanced chemistry cell (ACC) manufacturing capacity. The scheme is designed to promote domestic battery production and accelerate India’s EV adoption, which aims to increase electric vehicles to 30% of total car sales from the current 2%.
As per the scheme’s guidelines, companies must set up manufacturing units within two years of signing the agreement, ensuring a minimum “committed capacity” with 25% local value addition within two years and 50% within five years. Reliance initially planned a 10 GWh battery facility, securing production-linked incentives estimated at $400 million. Other recipients under the scheme include Rajesh Exports and a unit of Ola Electric Mobility Ltd., collectively contributing to a 30 GWh battery capacity.
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 missing Milestone 1 of the program. The penalty is set at 0.1% of the ₹5 billion ($60.7 million) performance security per day of delay, effective from January 1, 2025. As of March 3, the accumulated penalty amounted to ₹31 million ($355,293). While RNEBSL has formally requested an extension, it has not disclosed the revised timeline or reasons for the delay.
Reliance previously stated 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) for utility-scale, residential, commercial, and mobility markets. Over time, the facility is expected to expand into full-scale cell manufacturing and battery chemical production, reinforcing Reliance’s position in energy storage.
Once fully operational, the Jamnagar plant will have an annual production capacity of 30 GWh, significantly contributing to India’s clean energy transition. Reliance has also been actively investing in battery technology, acquiring stakes in multiple firms, including LithiumWerks, a lithium iron phosphate (LFP) battery manufacturer; Faradion, a UK-based sodium-ion battery technology company; and Ambri, a US-based liquid metal battery developer, which Reliance is positioned to take over following Ambri’s recent bankruptcy proceedings.
These strategic investments align with Reliance’s broader ambitions in advanced energy solutions, strengthening India’s self-reliance in battery manufacturing and positioning the company as a key player in the global battery supply chain.
