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Reliance New Energy completes Faradion acquisition, securing cutting-edge sodium-ion battery technology to power sustainable energy initiatives at its upcoming Jamnagar gigafactory.
Reliance New Energy Limited (RNEL), a subsidiary of Reliance Industries, has officially acquired the remaining 8% stake in Faradion Limited, a UK-based leader in sodium-ion battery technology. Finalised on October 28, 2024, the transaction grants RNEL full ownership of Faradion, adding an advanced energy storage technology to its portfolio. RNEL initially acquired a majority stake in Faradion in December 2021, valuing the company at £100 million, alongside an investment of £25 million to fuel its growth.
Faradion, based in Sheffield and Oxford, specialises in sodium-ion batteries—a sustainable and economically viable alternative to traditional lithium-ion batteries. Sodium-ion technology addresses several limitations associated with lithium-ion batteries, particularly in terms of affordability, resource availability, and safety. Sodium is a more abundant resource than lithium, lowering production costs and minimising reliance on lithium mining, which has significant environmental impacts. Additionally, sodium-ion batteries demonstrate greater thermal stability, reducing risks of overheating and fire.
Despite sodium batteries traditionally having lower energy density compared to lithium-ion batteries, Faradion has developed high-energy-density sodium batteries that promise efficiency without compromising safety or sustainability. This makes Faradion’s technology ideal for applications in energy storage and renewable power systems.
RNEL plans to integrate Faradion’s sodium-ion technology into its ambitious green energy projects, particularly at the upcoming energy storage gigafactory in Jamnagar, Gujarat. The Dhirubhai Ambani Green Energy Giga Complex, a major component of Reliance’s renewable energy expansion, aims to lead India’s transition to sustainable energy solutions. This gigafactory will house Faradion’s cutting-edge battery technology, supporting large-scale energy storage and promoting Reliance’s goal of self-sufficiency in energy production.
The acquisition aligns with Reliance’s broader commitment to sustainable energy and reduces its dependency on lithium resources for energy storage. By bringing Faradion’s unique sodium-ion technology in-house, RNEL gains a competitive advantage in the evolving global battery market, positioning itself at the forefront of green energy technology.
For investors, the acquisition may positively impact Reliance New Energy share price, especially as the company rolls out this technology in its energy projects. As sodium-ion technology becomes increasingly essential for sustainable energy storage solutions, Reliance’s full ownership of Faradion positions it as a leader in the transition to eco-friendly energy alternatives.
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