Aramco of Saudi Arabia is ready to take over the stake sales it procured in Reliance Industries. This move proves that the latter is prepared to abandon its emissive activities. Moreover, Ambani will be utilizing this strategy to switch to renewable energy. The company explained that Reliance Industries Limited would be diving deeper into clean energy and its technology to ensure that the company thrives amid the phasing out of processes that pollute the environment.

The company also registered itself on the stock exchange market, hoping to attract more investors to finance its upcoming operations. However, Tesla still controls a significant portion of the electric vehicle market and also wants to dominate the energy production and storage technology.

Elon Musk is pumping resources into energy production and storage technology like batteries and solar panels. Ambani of the RIC is also in the race to secure his company’s position in the new trends, although not through electric vehicle production and sales. Musk explained that he is making this move because energy storage technology is going to witness exponential growth in the coming years at a fascinating rate.

This sector has recorded 72% growth in last year alone even though the pandemic was straining the efficiency of operations. Morgan Stanley, an international investment bank, is looking forward to Reliance Industries investing not less than $15 billion into this opportunity through this decade to land its feet on $50 billion returns from the renewable energy, batteries, and new technology that it would be having.

This rate of return is mega considering the company will be dealing in other projects capable of a potential closer to the value in question. The company’s stocks recorded a 2% increase last Tuesday after Aramco, the seventh-largest company in revenue scales, announcing a possible agreement with the company. Aramco narrated its desire to own 20% of RIL’s business. This move will raise the capital base of the company by $15 billion.

The primary challenge was that the pandemic made the procession of the deal sluggish. Ambani, the head of Reliance Industries, might have also decided to focus on renewable energy in Saudi Arabia because it is heading in the same direction. Saudi Arabia decided to drop off its dependence on crude oil mad instead pursue clean and emission-free energy. S&P Global Platts reported that this move would raise $20 billion if investments go through renewables. Ambani’s prediction and strategy are still doubtful until the country witnesses’ procedures and operations kicking off in the company’s utilities.

By Adam