Ola consulting global suppliers to build $1bn battery cell manufacturing plant in India

SoftBank Group-backed Ola Electric is in talks with multiple global suppliers to build a battery cell manufacturing plant in India with a capacity of up to 50-gigawatt hours, sources said

Updated - June 07, 2022 06:23 pm IST

Published - June 07, 2022 03:58 pm IST

FILE PHOTO: Mahindra’s, e2oPlus, operated by Indian ride-hailing company Ola, is seen at an electric vehicle charging station in Nagpur, India January 24, 2018.

FILE PHOTO: Mahindra’s, e2oPlus, operated by Indian ride-hailing company Ola, is seen at an electric vehicle charging station in Nagpur, India January 24, 2018. | Photo Credit: Reuters

As part of its broader electrification push, the firm plans to invest in companies with advanced cell and battery technology, alongside the 50 Gwh battery plant.

Sign up to our Technology newsletter, Today’s Cache, for insights on emerging themes at the intersection of technology, business and policy. Click here to subscribe for free.)

Ola Electric needs 40 Gwh of battery capacity to power 10 million electric scooters annually. The remainder will be for its electric cars, which the company plans to manufacture in the future.

Sources said the cell battery plant may cost around $1 billion (over ₹7,700 crore) and may be built with an initial capacity of 1 Gwh, which will be expanded in the future.

Over 40 global suppliers are already in Bengaluru to meet with Ola founder and CEO Bhavish Aggarwal at the company's headquarters and are also visiting the Ola Futurefactory in Krishnagiri, Tamil Nadu this week, sources aware of the matter said.

Ola Electric, they said, has initiated talks with global suppliers from Germany, Korea, Japan, and other hubs to fuel its battery manufacturing ambitions.

It currently imports its battery cells from South Korea.

Companies like Dürr and Siemens also seem to be on the list of suppliers. The battery cell manufacturing sector is dominated by the likes of CATL, LG, Energy Solutions, and Panasonic, which supply to automakers such as Tesla and Volkswagen.

Industry experts believe that one of the world's youngest EV companies is keen to begin cell manufacturing by next year.

Aggarwal has already stated that India can soon replace China and emerge as the global hub for electric vehicles (EVs).

Towards this end, Ola plans to develop the entire ecosystem -- cell and battery tech, global supply chains, interconnected as well as autonomous vehicle technologies.

Ola Electric is the only Indian auto and EV company that has been selected by the government under its ambitious ₹80,000 crore cell PLI scheme to set up an advanced cell manufacturing factory in 2 years. Its cell Production Linked Incentive (PLI) bid was for the maximum allowed bid capacity of 20 GWh.

According to sources, Ola is also looking to set up an even larger 50 GWh gigafactory and a battery innovation centre to support its two-wheeler and four-wheeler roadmap for India and the world.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.