Ola Electric is working hard to expand its footprint in India and is now planning to set up a battery cell manufacturing plant in the country. according to a report by RutersThe company is looking to set up a battery cell manufacturing plant in India with a capacity of up to 50 gigawatt-hours (GWh).
Ola currently requires 40GWh of battery capacity to meet its annual target of manufacturing 10 million electric scooters. The remaining 10GWh of batteries will be used for the electric cars the company plans to manufacture in the near future.
Citing another source, the report said that the company’s initial plan was to install 1GHW of battery capacity by 2023 and expand it to 20GWh in the next 3-4 years. The report further stated that this 1GWh battery capacity plant itself would require an investment of up to $1 billion.
Ola currently imports battery cells from South Korea. The report further said that the company is looking to invest in companies with advanced cell and battery technology, and will set up a battery research and development facility in India.
Currently, the battery cell manufacturing landscape is dominated by a handful of Asian companies, including CATL, LG Energy Solutions and Panasonic. If Ola sets up its own manufacturing plant, then it will not have to depend on third party companies for supply.
While Ola Electric has ambitious plans, it has made a rocky start considering that the company faced a lot of production and delivery delays for its Ola S1 electric scooter. It also saw several senior-level exits during the time period.
The battery plan seems to have come ahead as the company tries to ramp up the production levels of its electric scooters. The company currently manufactures around 1,000 scooters per day as per its CEO. In the first phase, a target of two crores has been set.
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