Reliance Infrastructure Ventures into EV and Battery Mfg

Reliance Infrastructure, led by Anil Ambani, is making a significant move into the electric vehicle (EV) and battery manufacturing sectors. The company has appointed Sanjay Gopalakrishnan, formerly of BYD, to spearhead this new strategic direction, as reported by Reuters.

The company's plans include establishing an EV manufacturing plant with an initial capacity of 250,000 vehicles per year, with ambitions to scale up to 750,000 units in the near future. Alongside this, Reliance Infrastructure is considering setting up a battery plant starting at 10 gigawatt-hours (GWh), with a potential expansion to 75 GWh over the next decade.

Reliance Infrastructure is currently finalizing its plans and exploring partnerships, including potential collaborations with Chinese firms. The company is also consulting with external experts to evaluate the cost feasibility of these large-scale projects.

India’s EV market is dominated by Tata Motors, with a 70 percent share, while other competitors like SAIC, MG Motor, and BYD are expanding their presence. The Indian government aims to increase EV adoption to 30 percent of new car sales by 2030, with over $5 billion in incentives for local manufacturing.

Mukesh Ambani’s Reliance Industries has already made strides in battery production, receiving government incentives for 10 GWh of battery cell production. If Anil Ambani's venture progresses, it will create direct competition within the growing EV market. Despite the potential, Reliance Infrastructure faces challenges with high debt and cash flow issues, casting uncertainty over the funding of its ambitious projects.

News by Rahul Yelligetti