The article discusses the implications of a potential technology denial by China on India’s clean energy transition, particularly in the context of battery technology. Reliance Industries, India’s largest private company, had reportedly been in talks with Chinese startup Hithium Energy Storage Technology Co. to acquire battery cell technology. However, Beijing’s tightening export controls on battery technology may have led to a breakdown in these talks.
This episode highlights India’s structural dependence on Chinese technology, which could be exploited by Beijing at any moment. India’s battery ambitions, including its plans to set up a gigafactory, rely on technology controlled by a strategic rival. The article notes that this dependence is a result of India’s lack of indigenous research capacity in critical sectors.
The article draws parallels with China’s own experience of technology denial, which has driven the country to develop its own alternatives. For example, the US embargo on GPS technology led to China developing its own BeiDou navigation system, which is now superior to GPS. Similarly, China’s development of indigenous 7nm chip technology was driven by the US blacklist on Huawei.
The article suggests that India needs to develop its own indigenous research capacity in battery technology and other critical sectors. It notes that the Modi government has taken steps to address this issue, including the establishment of the Research, Development and Innovation Fund, which provides patient capital for deep-tech investments.
However, the article also notes that India’s corporate giants, including Reliance, need to match government ambition with their own investments in research and development. The article cites the example of Reliance’s investments in battery technology companies, including Faradion and Lithium Werks, but notes that these investments have not yet led to significant commercialization.
The article concludes that India needs to develop a “little giants” program, similar to China’s, to identify and support small and medium-sized enterprises (SMEs) that have the potential to become globally competitive. This would require a tiered recognition system, financing, and regulatory simplification to support the growth of these SMEs.
Ultimately, the article suggests that India has a choice to make: it can continue to rely on foreign technology and risk being vulnerable to technology denial, or it can invest in its own indigenous research capacity and become a technology maker. The article concludes that history suggests that denial can be a gift, driving countries to develop their own capabilities and become more self-sufficient.