Ola to bet on batteries, company to be revamped with Rs 2,000 crore

Ola Electric plans to raise up to ₹2,000 crore by selling a stake in its battery unit, Ola Cell Technologies (OCT). The fundraising process is being handled by investment banks Avendus Capital and Motilal Oswal Financial Services. 

This move comes as Ola Electric is working to restructure its business and strengthen its balance sheet, while also expanding its battery manufacturing and energy storage capacity in the country.

OCT owns Ola's lithium-ion battery cell manufacturing plant in Tamil Nadu, which currently has a capacity of approximately 1.5 GWh. The company plans to expand this capacity to 6 GWh by the end of the current financial year. 

This stake sale will also help determine the market value of this battery manufacturing project, which is yet to be finalized. According to a PTI report, several financial investors, including some sovereign wealth funds, have expressed interest in the project.

Big step in battery manufacturing

Built with an initial investment of approximately ₹3,500 crore, this Gigafactory is considered a major step towards localizing battery cell manufacturing in India. 

Industry experts believe that domestic battery cell manufacturing is essential to reduce dependence on imports and strengthen the country's electric vehicle supply chain. 

This plant will help manufacture energy storage products and systems for several sectors other than two-wheelers.

Portfolio of 400 patents ready

The company's battery research and development activities take place at the Ola Battery Innovation Center, which operates under OCT. According to reports, the center employs over 200 experts and researchers and has developed a portfolio of approximately 400 patents. 

Research is being conducted on a variety of battery technologies, such as nickel-manganese-cobalt (NMC), lithium-iron-phosphate (LFP), lithium-manganese-iron-phosphate (LMFP), and lithium-manganese-rich (LMR). Furthermore, various battery designs, such as cylindrical, prismatic, and solid-state cells, are also being explored.

Renewable energy capacity will increase

As renewable energy capacity expands in India, demand for energy storage is also expected to grow. The country has set a target of achieving 50% of its total electricity generation from renewable sources by 2030. 

Since solar and wind energy are not constantly available, the need for energy storage systems between production and use will increase. 

Ola has already launched Battery Energy Storage Systems (BESS) for homes and is now planning to expand into commercial energy storage solutions.

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