Ola Cell Technologies has successfully identified key raw material suppliers essential for its lithium-ion battery production, both in the short and long term. The company has partnered with notable suppliers such as Umicore, Epsilon Advanced Materials, and Neogen to support its ambitious manufacturing plans.
Following a comprehensive assessment, Ola Cell Technologies narrowed down a list of 201 potential suppliers to 28 key suppliers for commercial offtake contracts. The selection criteria included technical capability, a willingness to collaborate, a preference for Ola as a supplier, and an interest in localizing production.
Ola Cell Technologies is committing approximately INR 2,249 crore for the first phase of its factory, aiming to achieve a production capacity of 5 GWh. This initial phase is expected to be operational by October, with construction currently underway for both phases of the project. The ultimate target is a 20 GWh capacity.
In the first segment of the initial phase, the factory will reach a capacity of 1.4 GWh, backed by an investment of around INR 1,226 crore. The second segment will add another 3.6 GWh capacity, with an investment of approximately INR 1,023 crore. Pilot trials are already in progress.
Looking ahead, Ola plans to further expand its capacity by adding 1.4 GWh by April 2025 in the second phase and an additional 13.6 GWh by the second quarter of 2026. The company has outlined a budgetary capital expenditure of approximately INR 1,226 crore for the second phase of its lithium-ion battery cell factory project. The capex for the third phase is yet to be finalized.
Ola Electric, holding a 99% stake in Ola Cell Technologies Pvt Ltd, has reportedly restarted preparations for a public offering. The ride-hailing giant is planning to raise $500 million via the IPO at a valuation of about $5 billion. Ola Cabs plans to file draft IPO papers for approval with the Securities and Exchange Board of India (SEBI) within three months.
In a bid to streamline operations, the company is reportedly planning to trim its workforce by 400-500 employees. Despite experiencing a 35% month-on-month decline in vehicle registrations, dropping to 33,062 units, Ola Electric has sustained its leading market position. The company previously achieved its highest-ever monthly registrations in March, with over 50,000 units recorded.
This strategic move to secure key suppliers and ramp up production capacity underscores Ola Cell Technologies’ commitment to advancing its lithium-ion battery production capabilities, positioning itself as a significant player in the burgeoning electric vehicle market.
