Ola Electric's New High-Energy Battery Cells to Slash Import Dependency by 2025

Ola Gigafactory in Tamil Nadu Nears Commercial Production

Ola Electric Mobility Ltd. is gearing up to revolutionize the electric two-wheeler market with its new high-energy battery cells, set for commercial production early next year. Currently undergoing trial production at Ola's Gigafactory in Krishnagiri district, these indigenous cells boast five times the energy capacity of their imported South Korean counterparts. This innovation is expected to significantly reduce Ola's import dependency, which currently stands at 35% of the components in their electric two-wheelers.

Bhavish Aggarwal, chairman and managing director of Ola Electric, highlighted the strategic impact of this development during a recent press conference in Ahmedabad. "The cell constitutes one-third of the vehicle's cost and is the most expensive component. By producing our own cells with cutting-edge design and R&D, we will not only enhance energy capacity but also bring down our import percentage significantly," Aggarwal said.

Gigafactory Expansion and IPO Plans

The Gigafactory, which has already seen an investment of ₹500 crore, is in the midst of an expansion. Phase 1(a), with a capacity of 1.4 GWh, was completed in March 2024. Phase 1(b), currently under construction, will increase capacity to 5 GWh and is expected to be completed by February 2025. The upcoming Phase 2 will further boost capacity to 6.4 GWh by April 2025.

To support these expansions, Ola Electric Mobility Ltd. plans to allocate ₹1,227 crore from its ₹6,100 crore IPO proceeds, alongside a ₹1,900 crore term loan from the State Bank of India. Under the government's Cell PLI scheme, Ola is committed to achieving a production capacity of 20 GWh by 2026.

Investment in R&D and Production Growth

In addition to expanding production capabilities, Ola will invest ₹1,600 crore of the IPO proceeds into Research and Development over the next three years. This investment is poised to enhance the company's product designs and customer experience through advanced data utilization, though Ola has no immediate plans to monetize this data.

Ola Electric Mobility Ltd. has shown remarkable growth, selling 3.29 lakh electric two-wheelers in the financial year 2024, up from 1.56 lakh units the previous year. The Ola Futurefactory, dedicated to manufacturing these electric two-wheelers, boasts a capacity of 10 lakh units annually.

As Ola Electric accelerates towards a more sustainable and self-reliant future, its new cells are set to play a pivotal role in reducing costs and imports, while driving innovation in the electric vehicle industry.