Reliance buys assets of Lithium Werks to boost clean energy innovation
Reliance Industries, an India-based conglomerate company engaged in the exploration and production of natural gas and crude oil, has reportedly acquired assets of Lithium Werks, a battery maker. This latest acquisition agreement worth $61 million marks the company’s second deal in less than 3 months, as it plans to make a greater push towards clean transport and energy.
The Indian conglomerate company has seemingly cited that the recent investment in Lithium Werks, a company that manufactures lithium iron phosphate batteries used mainly in EVs (electric vehicles), includes funding for future growth.
The statement further revealed that the assets that have been acquired through the subsidiary company, Reliance New Energy, include Lithium Werks' manufacturing facility in China, a portfolio of over 219 patents, key business contracts, as well as existing employees.
The acquisition deal is a part of Reliance’s target to cut dependence on the mainstay oil-to-chemicals business. Furthermore, the company is planning to invest around $10 billion in various clean energy projects to increase its green credentials and meet the net-zero carbon target by 2035.
In another deal, Reliance agreed to buy a UK-based sodium-ion battery firm, Faradion, in December 2021 for an enterprise value of $130 million (100 million pounds). Following the two deals, both Lithium Werks and Faradion will give the refining company access to technology to support the manufacturing and production of batteries and their systems in India.
According to Mukesh Ambani, Reliance's owner, Lithium Werks and Faradion will allow the company to accelerate its vision of establishing India at the core of global battery chemistries development. He also stated that the deal will enable it to offer a high-performance supply chain to the burgeoning EV and energy storage markets in the country.
For the record, India has been providing incentives of over $6 billion to companies to manufacture EVs and batteries locally, which is in line with the government’s target to establish a domestic supply chain for renewable energy and clean transport.
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Pankaj Singh
Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With experience in technical and niche w...