Key insights
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1
China technology-transfer curbs complicate localization efforts: China has stepped up scrutiny of clean-energy technology deals and imposed curbs on overseas technology transfers in key sectors, complicating localization efforts by foreign manufacturers.
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2
Policy incentives cited as insufficient for local cell manufacturing: People familiar with the matter said Reliance New Energy was penalized for missing deadlines under India’s production-linked incentive program, and said current policy incentives are far from enough to create local manufacturing while cheap Chinese batteries are widely available.
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Sector shift toward BESS assembly: People familiar with the matter said a lack of access to Chinese cell technology has accelerated plans across the sector to build battery energy storage systems instead of full-fledged cell manufacturing.
Takeaways
Reliance and other Indian conglomerates are prioritizing battery energy storage system assembly while access to Chinese lithium-ion cell technology remains constrained.
Topics
World & Politics Policy & Regulation Climate & Environment Energy Transition