Ola Electric to build a 50GWh battery plant in India for its EV push

Ola Electric to build a 50GWh battery plant in India for its EV push

by Pranali Mehta

Ola Electric is reportedly constructing a battery cell manufacturing unit in India with a capacity of 50 GWh as part of its electrification expansion strategy.

The Softbank-backed startup seeks to produce over 10 million electric scooters annually, for which it requires a plant with a production capacity of 40 GWh. The remaining 10 GWh will be used to fabricate electric cars.

Sources with knowledge of the matter claimed that the company aspires to begin the process by first establishing a plant with 1 GWh battery capacity by 2023, and then broadening it to 20 GWh in 3-4 years. It is worth noting that Ola Electric would need to invest USD 1 billion for this process.

Currently, Asian multinationals such as LG Energy Solutions, Panasonic Corporation, and CATL are ruling the battery cell manufacturing industry and supplying batteries to behemoths such as Tesla and Volkswagen.

Varun Dubey, CMO at Ola Electric, stated that battery & cell research is the company's primary focus and that long-term plans are already in the works.

Despite its lofty goals, the company has had a rocky onset due to delivery delays, senior-level departures, and widespread criticism of its product on social media.

However, even the top manufacturers have indicated how daunting it has been to produce the batteries on a large scale given the several product recalls, reiterating how complexities have doubled due to unforeseen geopolitical risks.

Ola Electric is presently producing 1,000 scooters per day and it has a goal to reach 2 million units by the end of the first phase, the date of which is yet to be announced. While Ola has been purchasing battery cells from South Korea, the manufacturer plans to create a battery research and development facility in India in the coming years.

Notably, India wants its homegrown companies to assemble clean fuel vehicles and batteries to limit oil imports and pollution. For this, the government has promised incentive plans worth up to USD 6 billion for vendors, and Ola hopes to be on the receiving end of this handout.

Source credit:

https://www.business-standard.com/article/companies/ola-electric-plans-50gwh-india-battery-plant-in-ev-push-report-122022401176_1.html

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...