Reliance Industries , the Indian refining behemoth, has paid $61 million for the assets of battery maker Lithium Werks, its second such transaction in less than three months, as it expands its focus on clean energy and transportation.
Reliance’s investment in Lithium Werks, which makes lithium iron phosphate batteries used primarily in electric vehicles (EVs), includes funding for future growth, the company announced late Monday.
According to the company, the assets acquired through its subsidiary Reliance New Energy include Lithium Werks’ portfolio of approximately 219 patents, a manufacturing facility in China, key business contracts, and existing employees.
The transaction comes as Reliance looks to reduce its reliance on its mainstay oil-to-chemicals corporate, with plans to invest $10 billion in clean energy projects to boost its green credentials and meet its goal of net zero carbon emissions by 2035.
In December, Reliance agreed to buy Faradion, a UK-based sodium-ion battery company, for 100 million pounds ($130 million). The two businesses will provide Reliance with access to technology that will be critical in the company’s plan to manufacture batteries and battery systems in India.
It will enable Reliance to provide “a high-performance supply chain” to India’s growing EV and energy storage industries.
As part of its efforts to establish a domestic supply chain for clean transportation and renewable energy, India is offering up to $6 billion in incentives to companies that build EVs and batteries in India.
Reliance Industries, which operates the world’s largest refining complex in Jamnagar, western India, will invest $10.1 billion in clean energy over the next three years in order to become a net carbon zero company by 2035.
Reliance’s strategy is similar to that of global oil majors such as Royal Dutch Shell Plc (RDSa.L) and BP Plc (BP.L), which have set a goal of becoming net zero carbon by 2050 in response to investor and climate activist pressure.
Global policymakers and regulators want financial institutions to do more to help speed up the transition to low-carbon economies and fulfil the United Nations Sustainable Development Goals.
Last year, a group of 30 asset managers with more than $9 trillion in assets under management launched the Net Zero Asset Managers Initiative to assist clients in achieving carbon neutral portfolios by 2050.
