'Will have Ola cells': Bhavish Aggarwal promises to power EVs with homegrown batteries from early next year

Ola Electric has announced plans to power its EVs with its own lithium-ion battery cells starting early next year. These indigenously developed cells will be manufactured at the company's newly operational Ola Gigafactory, reducing reliance on imports and lowering EV production costs.

“Will have own cells within our scooters by early next year… Our goal [in] doing [our own] cell[s] is [that] we can reduce dependency on imports as well as reduce the cost of EVs,” founder and managing director Bhavish Aggarwal stated during a press briefing to Moneycontrol.

The sprawling Ola Gigafactory, spread across 110 acres, has commenced operations with an initial capacity of 5 GWh (Giga Watt hours), which will be scaled up to a substantial 100 GWh in phases. Aggarwal revealed that the company has already invested "close to $100 million for phase A of Gigafactory expansion." Currently, the facility operates at a capacity of 1.49 GWh.

This move positions Ola Electric as a frontrunner in India's EV battery manufacturing landscape. Currently, Indian EV manufacturers rely heavily on imported lithium-ion battery cells from countries like China, Taiwan, Japan, and Korea.

Industry experts believe that manufacturing these critical components within India could significantly reduce battery pack costs by 40-50%, making EVs more affordable for Indian consumers.

Ola Electric's Gigafactory is a testament to the growing momentum of India's EV ecosystem. The company already boasts a production capacity of 1 million EVs per annum at its Future Factory in Krishnagiri, Tamil Nadu, and has ambitious plans to expand its product portfolio.

"We will launch a few variants of motorcycles by early next year," Aggarwal announced, hinting at an exciting roadmap for the company.

Addressing concerns regarding the recent reduction in FAME (Faster Adoption and Manufacturing of Electric Vehicles) subsidies, Aggarwal expressed alignment with the government's decision.

“FAME subsidy has been tapering off, as adoption is going up, the costs are also coming down. More and more local supply is happening, the cost will further come down… We are fully aligned with the government on FAME subsidy tapering," he stated.