What is the idea of Reliance New Energy acquiring Lithium Werks?

Reliance New Energy Ltd will acquire the tangible and intangible assets of Lithium Werks of Belgium. It will pay $61 million including finance for the working of the company post the deal. Lithium Werks manufactures cobalt-free lithium batteries using proprietary technology. Reliance New Energy also gets the patents, plants and the order book. For RENL it is access to high-performance lithium iron phosphate (LFP) batteries business.

This synchronises with the big leap that Reliance is planning in the field of innovative energy. Traditional NMC (Nickel, Manganese, Cobalt) batteries had limited life. Instead, these new LFP batteries are free of nickel and cobalt. Lower on cost, higher on performance and lasts longer. These are best suited for renewable plants, electric cars etc.

This deal must be seen in the context of Reliance recently acquiring Faradion of UK for £125 million. Faradion develops sodium-ion batteries using sodium abundantly available naturally. The acquisition of Lithium Werks helps Reliance New Energy beef up its technology portfolio of battery cells with design and manufacturing. It may be recollected that Reliance will invest Rs.75,000 crore in next 3 years to build clean energy franchise.