Electric vehicles are the talk of the town. Ola, Ashok Leyland, Tata Motors and every automaker is on it at full speed. And now, Reliance Industries has spent $135 million on sodium-ion battery technology. Read to know more!
Electric vehicles (EVs) are the future of the automobile industry, and to run EVs we need batteries. Now, some of you might say that we already have battery makers, like Exide Industries and Amara Raja etc. But let us tell you, they make lead-acid batteries, what EVs need is sodium-ion or lithium-ion batteries. Sodium is an excellent candidate for building batteries because it ionizes with electrons easily. In fact, our future depends on sodium-ion.
Moreover, sodium is cheap and easily available, which makes it a sustainable choice for all EV companies. In fact, companies have already started to put it to use. Last year, one of the world’s largest battery makers, CATL, announced that they would start placing sodium cells in battery packs. Reliance Industries knows what the future holds, and that’s why it acquired the UK company, Faradion, to develop batteries. Faradion holds 21 patents on cell development, cell infrastructure and safety etc. The company only employs 16 people and managed to receive $135 million from Reliance which is humongous money for them.
Is This Concerning?
Yes, it is highly concerning for battery makers like Exide and Amara Raja since Reliance has landed in this space now. It’s not easy to compete with India’s one of the most valuable companies, Reliance. Since Reliance has enormous capital to invest additional money in building sodium-ion plants, the auto-ancillary sector just got more competitive!
Most battery makers in India manufacture lead-acid batteries, and that’s why it will be tough for them to suddenly change their entire plant to produce sodium-ion batteries. Automobile manufacturers who saw this coming must have already started to build their own battery plants to save extra costs. And we believe this space just got more interesting.
What Lies Ahead?
The future will be fueled with these batteries. If battery manufacturers don’t act now, then they will disappear in thin air soon since auto manufacturers are pouring oodles of money into battery development. EVs are steadily gaining market share. All eyes are now on auto companies that launch efficient EVs and batteries.