Softbank-backed Ola Electric currently imports battery cells from South Korea. It plans to invest in companies with advanced cell and battery technology, alongside the 50 Gwh battery plant.
As per Reuters, Ola Electric has plans to build a battery cell manufacturing factory in India with a capacity of up to 50 GWh. This is in line with the companys broader electrification push. Ola Electric currently requires 40 Gwh of battery capacity to cater to its annual target of 10 million electric scooters. The remainder will be for its electric cars, which the company plans to manufacture in the future.
Initially, the plan was to set up a 1Gwh battery capacity plant by 2023, which would eventually expand up to 20 Gwh in the next 3-4 years. This plan alone would cost the company around $ 1 billion, as per Reuters source.
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Ola Electric currently imports its battery cells from South Korea. They also have plans to invest in Indian companies that manufacture advanced battery cells and battery technology, alongside setting up a battery research and development facility in India. The battery cell manufacturing sector is currently dominated by Asian companies, which include, CATL, LG, Energy Solutions, and Panasonic. These are the primary companies that supply to major automakers like Tesla and Volkswagen.
EV battery manufacturers have had to face several issues over years - whether it is about recalls or setting up a complex supply chain. All these issues have made it clear that manufacturers must produce batteries on a larger scale. Mr. Varun Dubey, the chief marketing officer at Ola Electric, said in an emailed response to Reuters' questions, that, Battery and cell research and manufacturing is an important area of focus for us and our plans are in the advanced stages. We will not comment on the specifics."
The Government of India has already announced its incentives proposal for EV manufacturers and electrification plans, worth up to Rs. 6 lakhs, and Ola Electric has been at the forefront to avail these benefits. However, the company has been riddled with several issues from delivery delays to senior-level exits.
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Ola Electric is yet to ramp up its scale of production to a sizeable level, for the battery plans to be valid. Currently, the company produces 1,000 scooters a day, and it aims to manufacture 2 million units in the first phase itself.
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