Reliance Industries BESS Strategy, 120 GWh Gigafactory, $3 B Samsung Deal, and 3 Energy Projects (2024-2026)

Manufacturing Self-Reliance, Reliance Industries’ Technology and Supply Chain Risks

India’s strategy to achieve energy manufacturing self-reliance is critically dependent on overcoming significant technology and raw material supply chain vulnerabilities, a challenge crystallized by Reliance Industries’ ambitious gigafactory project. While early-stage announcements between 2021 and 2024 focused on ambitious capacity targets, the period from 2025 to today has revealed the practical execution risks tied to external dependencies, particularly on Chinese technology and global mineral markets.

• The primary execution risk is technology acquisition. In January 2026, reports indicated that Reliance Industries’ plans for direct cell manufacturing were paused after a failed attempt to license proven technology from Chinese firm Xiamen Hithium Energy. Although Reliance Industries denied any halt, the event highlighted a core dependency that threatens to increase costs and delay timelines for its domestic manufacturing goals.
• Securing a resilient raw material supply chain remains a major structural weakness for India’s battery ambitions. India has a heavy reliance on imports for critical minerals like lithium, with a significant portion of refined materials sourced from China. This exposes projects like the Jamnagar gigafactory to geopolitical tensions and price volatility, directly contradicting the national goal of “Atmanirbhar Bharat” (self-reliant India).
• The project’s scale has dramatically increased, shifting from an initial target to an ultimate goal of 120 GWh. This threefold expansion reflects a strategic necessity to meet India’s projected domestic demand and compete with global giants like CATL and BYD. However, this larger scale magnifies the underlying technology and supply chain risks.

$2.2 B in PLI Support, Reliance Industries’ Gigafactory Investment Strategy

Massive government incentives are the primary mechanism de-risking the enormous capital expenditure required for Reliance Industries’ entry into battery manufacturing, making the project financially viable despite high upfront costs and international competition. The investment strategy couples large-scale private capital with public subsidies to build domestic capacity at a pace and scale that would otherwise be untenable.

• The Indian government’s Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) manufacturing is the foundational financial support for the project. With a total outlay of ₹18, 100 crore (approximately $2.2 billion), the scheme aims to build 50 GWh of domestic capacity by providing direct financial incentives to key beneficiaries, including Reliance Industries.
• Reliance Industries has committed ₹75, 000 crore (approximately $9 billion) to its broader new energy ecosystem in Jamnagar, which includes the battery gigafactory. This vertical integration strategy, encompassing solar PV and green hydrogen, creates a captive internal market for its battery storage solutions, providing a crucial demand backstop during the initial production ramp-up.
• The PLI scheme is essential for leveling the playing field with established Chinese manufacturers. Greenfield capital expenditure for a gigafactory is estimated at $80 million per GWh outside of China, nearly double the cost within China. The PLI incentives are designed to bridge this significant cost gap and enhance the competitiveness of Indian-made batteries. As of July 2026, ₹5, 180 crore in investments had been made under the scheme, though no incentives have been claimed yet, as they are tied to meeting production milestones.

Table: Reliance Industries Strategic New Energy Investments

Reliance Industries’ $3 B Samsung Deal and Technology Licensing Challenges (2026)

Reliance Industries is executing a dual-pronged partnership strategy, successfully securing long-term revenue through major offtake agreements while simultaneously navigating critical challenges in acquiring core manufacturing technology. This highlights a contrast between its commercial acumen in established energy markets and the difficulties of entering a technologically complex and protected industry like battery cell production.

• A landmark commercial agreement was signed in March 2026 with Samsung C&T Corporation, a binding 15-year offtake deal for green ammonia valued at over $3 billion. This agreement is one of the largest of its kind globally and serves to anchor the financial viability of Reliance Industries’ broader green hydrogen ecosystem, demonstrating its ability to secure large-scale international customers.
• In stark contrast, Reliance Industries faced a significant setback in its reported attempt to license battery cell technology from Xiamen Hithium Energy of China in January 2026. The failure to secure this partnership underscored the high barriers to entry and the geopolitical complexities of relying on Chinese firms for foundational manufacturing know-how.
• The company’s role as a beneficiary of the government’s PLI scheme represents a crucial public-private partnership. This collaboration aligns Reliance Industries’ corporate objectives with national industrial policy, with the government acting as a key enabler by reducing financial risk in exchange for the creation of domestic manufacturing capacity.

Table: Reliance Industries New Energy Partnerships

India’s Manufacturing Hub, Reliance Industries’ Jamnagar Giga Complex Focus

Reliance Industries is consolidating its new energy ambitions into a single, massive manufacturing hub in Jamnagar, Gujarat, creating an integrated ecosystem that is central to India’s clean energy strategy. This geographic concentration aims to generate efficiencies and a closed-loop value chain, but it also centralizes both operational and strategic risk in one location.

• The Dhirubhai Ambani Green Energy Giga Complex in Jamnagar is the epicenter of Reliance Industries’ entire new energy portfolio. The complex is designed to house manufacturing for the full solar value chain, the 120 GWh battery gigafactory, and a green hydrogen production hub, including electrolyzer manufacturing.
• This integrated model creates significant operational synergies. For instance, the battery energy storage systems (BESS) produced at the gigafactory will be used to store power from Reliance Industries’ own large-scale renewable energy projects, such as its planned hub in Kutch, creating a captive, internal market.
• While the initial focus is on the domestic Indian market, the scale of the Jamnagar complex positions it as a potential export hub. Success in serving India’s burgeoning demand for energy storage and electric mobility could provide a platform for Reliance Industries to compete in international markets.

LFP Technology Choice, Reliance Industries’ Path to Commercial Scale Production

Reliance Industries’ selection of Lithium Iron Phosphate (LFP) as its primary battery chemistry is a pragmatic decision that prioritizes cost, safety, and durability for the Indian market, even as it presents execution hurdles in achieving commercial scale. This choice reflects a strategic focus on the utility-scale and industrial storage markets, where long-term operational costs are more critical than the higher energy density offered by nickel-based chemistries.

• LFP technology is the cornerstone of the gigafactory’s initial 40 GWh phase. This chemistry is well-suited for India’s grid-scale BESS and commercial mobility needs due to its longer cycle life and enhanced thermal stability, which reduces safety risks.
• The path to commercialization is phased, starting with the assembly of battery packs using externally sourced cells before progressing to in-house cell manufacturing. This approach allows Reliance Industries to enter the market more quickly and build its supply chain while it works to secure or develop its own proprietary cell technology.
• While LFP is the immediate focus, the industry is closely watching emerging alternatives like sodium-ion batteries. Though currently more expensive, sodium-ion technology offers a long-term strategic advantage by eliminating the need for lithium and cobalt, thereby mitigating critical raw material supply risks and aligning with the ultimate goal of energy independence.

Reliance Industries’ SWOT Analysis for its 120 GWh Gigafactory Ambition

The success of Reliance Industries’ 120 GWh gigafactory hinges on its ability to leverage its immense scale and government support to overcome profound weaknesses in technology access and raw material sourcing. The project represents a high-reward opportunity for both the company and India, but it is accompanied by significant external threats from established global competitors and geopolitical supply chain risks.

• Strengths: Unmatched scale in the Indian context, a fully integrated new energy ecosystem, strong financial backing, and significant de-risking through the government’s PLI scheme.
• Weaknesses: A critical dependency on foreign technology for cell manufacturing and a heavy reliance on imported raw materials, particularly refined lithium from China.
• Opportunities: A massive and rapidly growing domestic market for BESS and EVs, potential to become a major regional export hub, and the ability to drive down costs through vertical integration.
• Threats: Intense competition from dominant Chinese players like CATL, global overcapacity in battery manufacturing, and vulnerability to geopolitical disruptions affecting critical mineral supply chains.

Table: SWOT Analysis for Reliance Industries’ BESS Strategy

40 GWh Commissioning in 2026, Reliance Industries’ Key Execution Signals

The commissioning of the initial 40 GWh phase of the Jamnagar gigafactory in 2026 will be the definitive validation point for Reliance Industries’ new energy strategy. The coming months will reveal whether the company can translate its ambitious plans and capital commitments into tangible manufacturing output, with several key signals indicating its trajectory.

• Technology Partnership Announcement: The most critical signal to watch is the announcement of a definitive, long-term technology partner for cell manufacturing. The identity of this partner and the terms of the deal will reveal Reliance Industries’ path to resolving its core technology dependency.
• Upstream Raw Material Agreements: Any announcements related to strategic investments in mining assets, offtake agreements with global producers, or partnerships for domestic refining of critical minerals will be a key indicator of progress in de-risking the raw material supply chain.
• First Claims Under the PLI Scheme: The point at which Reliance Industries begins to successfully claim incentives under the ACC PLI scheme will provide external, audited validation that it is meeting its domestic production and value-addition milestones.
• Start of Commercial Production: Adherence to the 2026 timeline for commissioning and the start of commercial production of battery packs will be the ultimate test of the company’s project execution capabilities in this new sector.

The questions your competitors are already asking

This report covers one angle of Reliance Industries’ commercial trajectory in new energy. The questions that matter most depend on your work.

• Battery cell technology licensing partners for India
• India lithium supply agreements
• Other companies in India’s battery production scheme
• Sodium-ion battery development India

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