RIL: Is the 'Reliance" on 'Jio' Justified?

Stock Opportunities
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Reliance Industries’ fully integrated, end-to-end renewable energy ecosystem plans seem to be taking shape.

Mergers and acquisitions are marking Reliance Industries’ foray into solar project development, PV module and battery storage manufacturing, Electrolyzer and Green hydrogen.
This article below gives a latest update…
Additionally, Today ET now TV news is that Reliance is also planning to foray in to supply chain for Green fuel /Renewable energy for CV.( Commercial vehicles )…Detailed information not known as of today.

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Discl - invested.

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Very interesting observations from the dash board:
(1) Biggest- Among all the Large Cap companies, Reliance occupies no.1 for investor wealth creation during last 5 years.

(2) Fastest during last 5 years - This slot belongs to all mid cap companies… if you want to create wealth faster …then invest in select mid cap companies, no wonder which most of us try to do that …though the risk is higher, volatility is higher.

(3) Consistent performance during last 5 years - once again this slot is taken by mostly mid cap companies …Only Reliance is an exception …which is only one large cap company which has given consistent performance though the return is moderate!
Anyway past performance is no guarantee for future performance. …but considering that Reliance has now well de-leveraged it’s balance sheet …And new business like Jio, Reliance retail , Renewable energy, it is expected to do well

Discl: Invested last year @800-1000 . . Exited at @1600 . …then re-entered @1800…
It is not an investment advice. I may be biased. please do your own assessment before investing.

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Mukesh Ambani Speaks Of Leadership Transition

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This is more like a click bait. Please delete this.
There are no confirmed reports of this.

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While many companies are planning to make Lithium Ion batteries, Reliance is the first company in india which is trying to make Sodium Ion batteries.
The raw material for Lithium Ion batteries are lithium and cobalt for which only a couple of countries have mines…cobalt is supplied by only one country i.e Congo. So sooner or later lithium ion batteries may carry the risk of supply … disruptions just like current semiconductor disruption. Atleast , we may have a solution for semiconductors , but lithium and cobalt sources are from mines located in one or two countries.

Where as , sodium is plenty on earth…india surrounded with sea , there is no dearth of sodium chloride and soda ash in India. Sodium and Lithium are neighbours in periodic table in chemistry and share common properties.The other raw material required for sodium ion batteries are Iron and manganese which we are self dependent.

Currently, China has also started making Sodium ion batteries to replace lithium Ion batteries to avoid supply disruptions of scarce elements like lithium and cobalt.

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Lithium Ion Battery Vs Sodium Ion Battery

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Renewables Energy-Reliance makes 6 Acquisitions within 6 months

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World’s first Solar Power plant using Sodium Ion Battery for storage of electrical energy !

Whether it is Solar, or Wind or any other Renewables, Electricity generated needs to be stored.
Currently EV’s are using lithium Ion batteries and the way in which whole world is moving towards Renewables, Green Hydrogen , lithium Ion batteries are not sustainable for the long term due to the scarcity of lithium and cobalt and heavy cost, hence all out efforts are towards more sustainable Sodium Ion batteries!

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Add to it, the other key reason is geopolitics. China controls 80% of lithium and cobalt supplies, and the entire western world doesn’t want to give the keys for the future to China, and hence the push to alternate technologies like Green Hydrogen, Sodium Ion batteries etc

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Reliance becomes Promoter of Sterling & Wilson Renewable Energy Limited

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How does jio ipo benifit existing shareholders

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Can Reliance Industries cause disruption in Battery technology? Can its Sodium Ion Battery Replace Lithium Ion Batteries ?

After Acquiring Faradion successfully, Reliance is the 2nd Company in the world after CATL of China planning to manufacture, scale up and commercialise Sodium Ion battery.

It is not only the question of availability , supply chain issues and sustainability of Lithium Ion Batteries, but there are a host of other benefits that sodium ion batteries offer!

(1) Lithium Ion batteries constitutes 30-50% of EV cost. With much cheaper Sodium ion batteries , the EV cost is likely to come down by 30%-50%

(2) Charging time for sodium ion batteries could reduce by 100% - currently Lithium batteries take hours together for charging.

(3) The most important part is that it can be zero discharged for storage and transportation and so lower risk of short-circuit where as lithium Ion batteries can not be discharged below 2 V. If you discharge a lithium ion battery below 2 volt…it is not possible to recharge to its full amp-hour capacity for ever. So for storage and transportation , the voltage is kept at 2.6 Volt minimum. There is a cut off switch for all lithium ion batteries , which does not get discharged below 2.6 V.
Therefore, Lithium ion batteries are classified as “Hazard ous goods” for air transportation where as lithium ion batteries can be zero discharged and transported by Air.

(4) The immediate disruption it could cause is on the Lead acid battery business, since sodium ion battery would be cost competitive with a plethora of advantages over Lead acid battery such as 4-6 times more energy density and overall efficiency stability, including its environment friendly characteristics and going forward It gradually would replace Lithium Ion battery not only for the stationary application but also for mobility solutions.
(5) Needless to say about the huge requirement of electricity storage solution for renewable energy power utility such as Solar, wind, biomass…etc. etc
(6) To all the advantages and benefits for Reliance , it is going to be the Global game changer plan …as 100’s of companies And research organisation in India and the world are researching on sodium ion batteries to further enhance its long term sustainability.
Reliance has the early mover’s advantage on sodium ion battery

So to sum up, if Reliance could do it with Jio, in all likelihood, it can repeat with Sodium ion battery , if it executes it’s plan effectively.

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Food for thought on batteries.

    • Faradion doesn’t have a commercial product available for sodium ion battery. In-fact CATL itself introduced 1st gen sodium ion battery in Jul-21. 1st gen sodium ion battery is low density (160Kw/kg) that is not yet suitable for PV.
  2. basing it on Tesla, the current charging time can be as short as 15min to fill 80% of Tesla’s humongous battery. Given that in India, super charger network is not ready and power infra lags.
  3. Sodium ion is just one of the battery tech, others are aluminum based, Solid state etc.
    There is a reason the current battery Li-Ion is not disrupted in last 30 years. Its time consuming, expensive and extremely hard to get chemistry right. To quantify, since 1800 there have only been 4 types of batteries in existence 1) Nickel-Cadmium 2) Zinc 3) Alkaline 4) Lithium
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Good question !
Yes, Lithium Ion batteries are there since last 30 years. Still it was never popular in Automotive application for obvious reasons - if you read through the posts above ( I would strongly recommend you to go through the Green hydrogen thread …if you have not …)

But today for the last 2 years , it is becoming popular because there is no other choice right now.

(1) EV technology was known for the last 50 years, but still EV was not popular…not produced commercially in large numbers…it is only during last 2-3 years that we talk about EV ! Why and how ?

(2) Similarly, Hydrogen as fuel cell and ICEV
technology was known since last 50-60 years…but it is last 2-3 years that we are trying to commercialize Hydrogen fuel vehicles. …

(3) Similarly, Solar/ wind power was introduced in India in 1985-90…but it never became a success. . I lost money in a wind turbine company called NEPC Micon in 1990. …I am still holding the stocks …the company no longer exists…same story with Suzlon…
But how is that today , a lot of companies making a lot of money in Solar and wind power ? Why and how ?

(4) same story with ethanol…it was known since last 30 years that 15-20% ethanol can always be mixed with petrol without any major changes in engines…but it was never done, thinking that it is not possible. today we are doing it …Why and how ??

(5) Grey hydrogen was a well known and established technology concept - Hydrogen produced from Methane , other hydrocarbons , coal…but today we are discouraging this …the whole world now Wants Green Hydrogen everywhere! No more Grey Hydrogen ! Why and how ?

(6) Nobody thought IT companies can double our money within a year ( I am talking about large cap ) …small IT companies have given 300-400% return…and all analysts say it is a multi year Growth story in IT? Why ?

(7) Semiconductor disruption has happened…there seems to be no end to the issue ! Why ? Now only a lot of companies are coming out with a lot of plan…but damage has already happened and we are yet to come out of this issue!

(8) Covid 19 type disruption never happened during last 30 years … but today it has happened

So what all we are trying to tell that nothing is impossible and anything and everything is possible .

Technology has not invented men…it is the men who invented technology !

Technology is evolving ! Necessity is the mother of invention ! Men can go to any extent of discovering technology which is sustainable …

While I just attempted to respond to you, if you donot like my response , please do flag it off and let the admin delete the post …I never mind …

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Most of the questions you have asked while valid have the answer - Global Policies are dictating the funds inflow into green energy hence new products are coming out to make use of the policy tailwinds (starting from Fame subsidies in India to Carbon reduction goals in China to EV targets in EU.

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Will give you one more example which you may be aware though.
We introduced CNG vehicles especially Buses and trucks during 2000-2005 in large numbers…then a no of concerns were raised by critics and general public…even the transporters and consumers were reluctant to buy CNG vehicles …Some of the concerns were genuine …

(1) Diesel / petrol require one fuel tank , but CNG gas will require multiple tanks / cylinders to be mounted in chassis and or will occupy boot space or under carriage space reducing ground clearance

(2) CNG needs to be kept compressed at 200 bar pressure where as diesel fuel / petrol are stored at normal atmospheric pressure…so vehicles would carry explosive gases at 200 bar… .what happens if there is a leakage ! When there is a leakage of gas , we cannot see …diesel petrol leakage is visible and can be known from the smell.

(3) Filling stations are not there…filling stations will have to fill at 200 bar pressure. .very dangerous … Filling stations become risky . …

(4) Filling time is too much…and many more…

We did have problems at the time of introduction…but then when there is a mandate …to go green, reduce emissions pollutions…then we the engineering R& D worked backwards and most of issues were addressed… .to day we have more net work, more reliable CNG cylinders/composite cylinders , valves , roof top mounted cylinders in buses, zero leakage joints and CNG components…

Today the mandate is no diesel petrol vehicles can ply in Delhi NCR…and most Auto companies are producing CNG vehicles…Maruti is one of the largest CNG car maker …Tata Motors , Leyland and Eicher are making CNG buses and trucks in large numbers …

It is a natural gas replacing diesel petrol…environment friendly …sustainable…producing at least 10 times less carbon emissions than diesel petrol…

Most importantly for a country like ours, with 1400 million people living…we can not depend upon other countries by importing goods for our daily needs ! And if there is a supply disruption , or sharp increase in import cost , we stand to lose !
Let us look at our much spoken about Generic Pharma companies …none have been able to sustain bottom line growth … as most of them depend upon China for API or raw material…

Sodium Ion batteries- we dont need to depend upon imports… .yes there would be issues…but we will have to address those…and when the whole world is working …solutions will come up sooner than later. And to your issue of Faradion as a Start up, Today’s All large and great companies one day were all start-ups and then scaled up gradually to become large companies.

Coming back to our Li ion battery, many two wheeler consumers in India are replacing lithium ion batteries with conventional lead acid batteries once the lithium ion battery fails…basic reason is affordability …even though they may get less efficiency with lead acid battery …

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In a technological Breakthrough, CATL China , the Pioneer in Sodium Ion battery technology which launched its Sodium Ion Battery in July 2021 with an Energy Density of 160 Wh/kg has now succeeded in increasing the energy Density to above 200 Wh/ kg which is very close to Lithium Ion Battery.

They seem to have filed a Patent

They are going to supply to Tesla.

While CATL- China had the first mover advantage in Sodium Ion Battery, but now since the whole world is working on sodium Ion battery , it would not be very far that we can find out different and alternate ways of increasing its Energy Density to make it at par with Lithium Ion Battery.

70% of our Planet Earth is covered with sea water and getting Soda ash from Sea water is not at all a Big issue. It is a great discovery for mankind. The other material required for Sodium Ion battery are Iron, manganese are available in plenty in our country.

And if Reliance plan for producing Sodium Ion battery is executed well , then India can avoid Chinese dependence for Lithium Ion Battery. Our EV cost will come down by 30% and charging time will reduce considerably. And this will also solve our energy Storage solution for Solar and wind energy …and also our dream of green hydrogen will come true .

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