Mukesh Ambani‘s Reliance Industries is rushing to get its orders of battery components out of China ahead of new export curbs, a Reuters report said. As per the report, a team from Reliance Industries has travelled to China to speed up the work.
An early shipment of the battery component from China is essential for India’s largest company, as Chinese export curbs are expected to take effect on October 8. Chinese companies are world leaders in electric battery technology, and to maintain that competitive edge, Beijing introduced new rules this month requiring companies to seek permission before exporting battery supply chain equipment.
The Reuters report stated that at least a dozen other foreign customers of the Chinese battery sector are in a similar situation to Reliance Industries. Some were forgoing quality assurance or other final stages of manufacturing to expedite the shipping of goods.
“Who cares if it hasn’t been painted yet or the screws haven’t been checked,” Reuters quoted a source. “They are saying we’ll do the testing once it lands, just get it out the door.”
Why do Chinese products matter
According to Reuters, without the Chinese gear, Reliance Industries cannot fulfil its plan to locally assemble or produce batteries to store energy from its mega solar power project.
China’s battery makers account for six out of the top ten players globally, according to consultancy SNE Research. CATL, China’s largest battery maker, said in a statement to Reuters that it was confident exports to its factories overseas would proceed smoothly under the new export regime.
China exported $48 billion worth of batteries in the first eight months of this year, up 26% compared to the same period last year. China’s battery export action adds to concerns about the risk of being dependent on Beijing for key technologies that could become entangled in trade conflicts.