Corporate Grapevine

Published: Feb 15, 2022
Updated: Feb 15, 2022

RIL aggressively pitching to emerge front-runner in e-batteries

Though there are a dozen players keen to take up the manufacture of batteries for electric vehicles, Mukesh Ambani – believe it or not — is likely to emerge as the front-runner in the race. As of now, Mr Ambani’s plan sounds a lot like Elon Musk’s Tesla minus the electric vehicle. India’s richest man and the largest company (by market capitalization) is making a strategic shift towards renewable energy. This is significant because over 60 per cent of RIL’s consolidated revenues comes from fossil fuels and their by-products.

Today, two-thirds of battery manufacturing for e-vehicles is being done by three companies, CATL, LG and Panasonic – based in China, South Korea and Japan respectively. Add three other companies and it will bring the marketshare to 87 per cent. In India also there has been a race and over a dozen players are in the queue. Besides Reliance, these include the Tatas, Adani, Suzuki, JSW and Hero, besides leading storage battery manufacturers like Exide and Amara Raja Batteries. If India’s leading business groups are readying plans to enter battery manufacturing and battery pack assembly with investments running into several billion dollars over the next decade or so, it will be the biggest private investment in a new industry in recent years.

Of course, Reliance Industries, the country’s largest company by revenue, seems to be the most ambitious of the lot. Multiple sources close to the company’s management point out that the company has aggressive plans, possibly jointly with a leading overseas industry leader.

Mr Ambani is making a strategic shift towards renewable energy. This is significant over 60 per cent of the company’s consolidated revenue comes from fossil falls and their by-products. Global investment bank Morgan Stanley expects RIL to pump $ 13-15 billion in the renewable energy space in the next 10 years. Maintains the company, “RIL will further accelerate its new energy and new materials business towards its vision of clean and green energy development.”

Interestingly, Tesla makes the lion’s share of its revenue from selling electric cars but its owner Elon Musk is investing in a big way in the energy generation and storage business, which includes batteries and solar panels. It seems Mr Ambani too invest too may invest in a similar space except of course for electric cars. According to a source, a joint venture between Mr Musk and Mr Ambani to manufacture batteries cannot be ruled out. The plant is most likely to be set up either in Gujarat or Maharashtra.