Ola in talks with multiple global suppliers for $1-bn cell manufacturing

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.

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

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 USD 1 billion (over Rs 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.

like Drr 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 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 (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 Rs 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 center to support its two-wheeler and four-wheeler roadmap for India and the world.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard,

Digital Editor

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button