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R&D Lessons from China: After Reliance, JSW Halts Battery Mfg Plans
(a) RIL & JSW: “China has weaponized access to battery tech” (b) FACT: Chinese firms failed for 30 yrs doing R&D, while we focused on quarterly EBITDA (c) Renting vs Owning Mentality.
India’s Licensing Mentality
a. On Aug 26, 2026, Parth Jindal (36 yrs) told reporters that JSW has halted its ₹40,000 cr planned investment to manufacture LFP (lithium iron phosphate) battery in India. Parth said: “China is guarding LFP technology like a weapon.”
b. At Reliance AGM 2026, Anant Ambani (31 yrs) told shareholders: “Access to battery tech is being weaponized.” Reliance was forced to halt its mfg plans for LFP battery after China refused to license cell technology.
c. Indian industry prefers non-export items like oil, steel, cement, power, ports, airports because a known playbook exists. Foreign competition disallowed, 100% domestic capture, predictable profits, multi-billion mkt cap, zero R&D.
China’s R&D Mentality
a. China controls 94% of global LFP capacity. Chinese Companies: CATL: 37%; BYD: 23% (BYD became a car-maker); Others: 34%
b. LFP technology did not fall from heaven into China's lap. 30 years ago nobody wanted LFP. LFP was cheap and safe, but it had a failing. Its conductivity was so poor it could hardly deliver current.
c. US researchers gave up on LFP after a long struggle as it looked impossible to crack. But it was obvious that LFP would one day win because it involved abundant, low-cost raw materials.
BYD 2002-2020: Lessons in R&D
18 Years of Blood, Sweat & Tears
2002: BYD was a small battery-maker founded by Wang Chuanfu, an orphan from one of China’s poorest provinces. Wang chose the long and painful road of LFP when everyone else believed it was the road to bankruptcy.
In 2002, BYD’s earliest investor was Charlie Munger. Charlie said: “I invested because Wang was a “chemistry genius” and a “fanatic who worked 70 hrs a week.”
2005: In 2005, BYD developed its first in-house LFP cell.
2008: BYD launched the world’s first hybrid electric vehicle running on its own LFP – three months after Warren Buffett bought $230 million of BYD stock.
2009-2012: Commercial testing was critical to scale up the technology. But car owners were not ready to buy EVs. Chinese govt backed the technology with “10 Cities, 1000 Vehicles” program, which put LFP on municipal buses and taxis.
2016-2018: The Darkest Years: Conventional NMC technology raced ahead due to govt subsidies. Competition intensified. Industry slogan became: “LFP is dead; stop burning money.”
2019: Near-Death Experience: BYD's net profit to shareholders fell to $267 million, while R&D expenses swelled to $1.25 billion. BYD had bet its last shirt on the technology.
2020: Redemption at Last: BYD’s legendary Blade Battery was born. It worked like a dream, having survived years of failures, bottlenecks, countless iterations, rebuilding of entire production lines, and a devastating lab fire.
R&D: How to Conquer the World
a. Dozens of Chinese EV and battery startups living off govt subsidies disappeared. BYD and CATL emerged as the survivors of a domestic bloodbath.
b. In 2025, the world’s largest EV seller BYD spent 9% of its sales revenue (not profit) on R&D. CATL spent 6%. To understand the scale: In 2025, CATL had 20,000 research staff and 43,000 patents & applications.
2025 BYD R&D Expense: $9B
2025 BYD Profit: $4.5B (Half)
c. China has innumerable companies today with such suicidal R&D expense ratios. India has ZERO because with a license raj DNA, the Indian promoter has no mad desire to change the world. He just wants to die rich.
India's Ambani-Adani Equation
The following equation sums up India's economic curse:
When you have zero R&D, your profit becomes:
$4.5B + $9B = $13.5B
India's family-owned conglomerates, thriving on protectionist policies, do not wish to waste even one dollar on R&D and innovation.
Their vision for India is to leave billions to their children. And the children think licensing another's IP is their birthright: “China has weaponized battery technology against us.”
@arabicatrader
Govind Jaiswal’s father, Narayan, once owned 35 rickshaws. But when his wife fell seriously ill, he had to sell 20 of them for her treatment. In 1995, she passed away.
After that, Narayan sold 14 more rickshaws to send Govind to Delhi for UPSC preparation. By the time Govind reached Delhi, his father was left with just one rickshaw, which he drove himself every day.
The family lived in a small room near Varanasi railway station, often without electricity. Govind studied in a government school and later attended an ordinary college in the city.
When he was 11 years old, he once went to play at a wealthy friend’s house. There, he was insulted because his father was a rickshaw driver and was thrown out.
An elder friend later explained to him how the world works and told him that unless his circumstances changed, he would continue to face such treatment for life. That very day, Govind decided to become an IAS officer.
In Delhi, he earned money by teaching mathematics to junior students. Many days, he skipped meals to save money. He studied in public libraries and completed his entire preparation in Hindi medium.
He told himself that he had no room for a second attempt. His father had sold everything. There was no “Plan B.”
In 2006, Govind Jaiswal cleared the UPSC Civil Services Examination in his very first attempt. He was just 22 years old at the time and secured All India Rank 48. With his first salary, he paid for the treatment of his father’s legs, which had been injured from years of pulling a rickshaw.
He once said:
“Those who understand my circumstances know that I had no other option. I chose the only path left for me. I worked hard for my studies.”
Ramanand Sagar of Ramayan fame was a famous Urdu author
The world remembers Ramanand Sagar as the man who brought Ramayan into Indian homes in 1987. Few know that before television & cinema he was one of the finest Urdu novelists of his generation.
Sagar was a scholar of Persian & Urdu. In 1942 Punjab University awarded him the title of Munshi Fazil, equal to a doctorate in Persian. He topped the highest examinations in Urdu & Persian & earned the title Adib e Alam. He began his career as a journalist with Daily Milap in Lahore & rose to become its editor.
In 1941 Tuberculosis nearly took his life. Doctors at a Kashmir sanatorium believed he would not survive. Sagar began writing about his illness under the title Maut Ke Bistar Se. The Lahore magazine Adab e Mashriq published the series & it made him a known name in Urdu literature.
It was the Partition that gave Urdu literature Sagar's masterpiece. Uprooted from Lahore he took refuge in Srinagar. He had seen what hatred does to humans & wanted the world to feel it. Out of this pain was born Aur Insaan Mar Gaya, called by Prof Ishtiaq Ahmad the most humane & politically neutral novel on the Partition.
When Pakistan invaded Kashmir in October 1947 Sagar had to flee again. Pilot Biju Patnaik, evacuating refugees on a Dakota DC 3, mistook his trunk for wealth & kicked it open. Inside lay only handwritten pages, the manuscript of his novel. Patnaik touched his feet on learning who he was.
Sagar did not stay back in Delhi. He left his family with Muslim friends in a Muslim locality, a mark of trust from a man displaced by communal violence, & returned to the Kashmir front. There, among writers like Khwaja Ahmad Abbas & Rajinder Singh Bedi, he completed his novel. Abbas remembered him reading its first chapter & called him a ray of light in a dark room.
Sagar wanted his novel to make readers hate war, killing & rape deeply, believing that was the only way love could grow stronger than hate. Aur Insaan Mar Gaya secured his place among the giants of Urdu fiction, even as the need to feed his family pulled him toward films.
#partition #forgottenhistory