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  • Writer's pictureHarsh Kumar

Reliance's big bet on electric vehicles race.

Mukesh Ambani's Reliance group has a presence in almost every industry sector. The corporation is expanding its business overseas with projects such as Jio's IAX undersea and entering new sectors such as artificial intelligence and blockchain.

The future is of EVs ~ Elon Musk (CEO of Tesla)

However, just one month after, Adani Power expanded its Green Plan and entered the EV segment with the announcement of setting up 1500 charging stations across India and with Tata & Mahindra groups increasing the production of electric vehicles, there was a clear indication that Reliance will also enter the Indian EV segment soon.

In January 2022, Reliance Industries Limited (RIL) made a bold move. They acquired Faradion, the British sodium-ion battery technology company, for $135 Million and assured the investment of $35 million in the next cycle. In 2021, Faradion Limited's annual evaluation was $3.94 million.

Why did Reliance industries invest 100x in a sodium-ion-based battery company?

Only CATL, China, and Faradion, UK (now Reliance New Energy Solar) have the patents to manufacture sodium-ion technology batteries. Today, in EVs, lithium-ion batteries are used, which are highly flammable, and produce excessive heat that can cause fire outbreaks. On the flip side, sodium batteries can survive from -30 degrees Celcius to 40 degrees Celcius, can be discharged to zero volts, and come at one-third of the Lithium battery's cost.

Considering all these factors, there can one more possible reason why RIL acquired Faradion; After the covid outbreak and Sri Lanka economic crisis, no country would want to deal with China or China-based CATL in the future.

Ultimately, if sodium-ion batteries replace lithium-ion batteries in the future, then the only company left will be Reliance. Hence it can be stated, that if the situation is fulfilled, Reliance can turn monopoly in the EV Segment of the world. That is why Reliance Industries have bet 100x very smartly on Faradion.

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